INSIGHTS
- Industry leaders caution that new tariffs on Mexico, Canada, and China could disrupt supply chains and strain businesses and consumers.
- The apparel and footwear sectors, already facing high tariffs, fear further inflation.
- FDRA reports a 26.2 per cent drop in footwear sales, linking it to inflation concerns.
- Business leaders urge the administration to reconsider its tariff strategy.
Industry leaders are expressing concern over the Trump Administration’s decision to introduce additional tariffs on key trading partners, cautioning that the move could disrupt supply chains, contribute to inflation, and impact American businesses. ...
Industry representatives argue that the new tariffs fail to account for the deeply interconnected trade networks that have evolved over the past three decades under regional free trade agreements.
The Western Hemisphere’s apparel supply chain relies heavily on cross-border collaboration, and these new measures could disrupt a well-established system, impacting businesses and consumers alike. The ‘Made in’ label reveals only part of a garment's journey. A simple cotton T-shirt undergoes a complex process—from design and manufacturing to logistics and distribution, United States Fashion Industry Association (USFIA) said in a statement.
The US textile sector is particularly intertwined with Mexico, which sources about 60 per cent of its textile production needs from American cotton, according to the USDA’s Foreign Agricultural Service. Official trade data further underscores these ties, with US apparel imports from USMCA partners Mexico and Canada reaching $3.1 billion in 2024, accounting for 3 per cent of total imports.