The United States Fashion Industry Association (USFIA) reveals the top five challenges facing US fashion firms in 2025 with University of Delaware professor, Dr Sheng Lu, adding there is one key finding that will "surprise" the sector.
Laura Husband | July 30, 2025
The 2025 edition of USFIA’s annual Fashion Industry Benchmarking Study asked fashion executives from 30 leading fashion brands, retailers, importers, and wholesalers about their business outlook, sourcing practices and views on trade policy.
Red flags for US fashion sourcing executives today
Unsurprisingly, top of mind for fashion sourcing executives is US trade policy, with Trump’s ever-changing tariffs having a wide-ranging impact on companies’ sourcing and business operations.
All of the respondents (100%) rated ‘Protectionist US trade policies and related policy uncertainty, including the impact of the Trump tariffs’ as a key business challenge and 95% ranked the issue among their top two concerns.
USFIA president Julie Hughes explains: “Wherever you go, everyone is talking about tariffs. Tariffs and trade deals are on the front page of the newspaper, and tariffs are the lead story online. And we hear from fashion brands and retailers that suddenly, your family and friends are fascinated to hear more about what you are working on.
“It’s the same with the respondents to the 2025 Fashion Industry Benchmarking
Survey. All respondents said that one of their top business concerns is “Protectionist US trade policies and related policy uncertainty, including the impact of the Trump tariffs.”
The report explains that US fashion companies faced an unprecedented increase in US import tariffs since the start of Trump’s second term in early 2025.