On a 23 July deadline, Just Style highlights important results regarding domestic sourcing from USFIA's Fashion Benchmarking Survey 2026:
Hannah Abdulla | July 23, 2026
USFIA says its study shows the US trade policy regarding tariffs “does not translate into reshoring of production”.
Compiled by the USFIA in collaboration with Dr Sheng Lu, professor of apparel studies at the University of Delaware and Emilie Delaye, graduate instructor at the University of Delaware, the annual survey once again cast doubts on the perception that higher tariffs alone can meaningfully promote the reshoring of US textile and apparel manufacturing.
Meanwhile, 47% of respondents reported that they “utilised more duty-free sourcing from members of US free trade agreements (FTAs) and trade preference programs” in response to tariff hikes.
This represents a significant decline from more than 72% a year earlier and likley reflects that, in 2026, apparel imports from most US FTAs and trade preference programs also became subject to higher tariffs, substantially reducing the benefits and incentives for expanding sourcing from these partner countries.
Qualified imports under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the US-Mexico-Canada Agreement (USMCA) were the only primary exceptions, which continue to receive preferential tariff treatment as of June 2026.
Sourcing from USMCA held steady in 2026, but respondents expressed hesitation in increasing sourcing from the region due to concerns over the agreement’s uncertain future.
76% of respondents sourced apparel from the members of the CAFTA-DR agreement in 2026, up from 64% in 2025. 24% sourced more than 10% of their apparel from the region concentrated among large companies typically using 2-3 members such as Guatemala, El Salvador and Honduras.
Apparel execs are looking to ramp up sourcing from the Western Hemisphere in a relatively narrow range of categories such as T-shirts, athleisure and bottoms from CAFTA-DR and T-shirts and bottoms from USMCA.
These findings are consistent with previous surveys and suggests limited product diversification remains a major constraint on the future growth of US apparel sourcing from the Western Hemisphere.
Access to duty-free benefits is one of the most important incentives for sourcing apparel from CAFTA-DR members and Mexico, respondents said, suggesting that exempting CAFTA-DR- and USMCA-qualified apparel products from policy uncertainty will be essential to supporting US fashion companies’ nearshoring efforts in the current business environment.
100% of respondents said they support maintaining the USMCA as a trilateral agreement.
Julia Hughes, president of the USFIA, reiterated: “The survey reinforces the fact that the policy of higher tariffs does not translate into reshoring of production. Only 10% of respondents identified sourcing more ‘Made in the USA’ products as a tariff response strategy.
“USFIA remains committed to working with brands and retailers and our supply chain partners to develop creative solutions and incentives to support manufacturing in the U.S. and in our key FTA partners. Fashion companies know from history that tariffs will not achieve that goal.”
Earlier this week, the USTR confirmed it would keep a 25% tariff in place on imported footwear from Brazil while Trump announced a 50% tariff on Canadian imports including apparel and textiles.