On a 4 August deadline, Procurement Magazine reports on the strengthening sourcing portfolio trend in USFIA's 2026 Benchmarking Study.
Louis Fargher | August 4, 2026
US fashion brands are solidifying supplier relationships instead of diversifying current portfolios as tariffs change the industry.
To tackle uncertainty around tariffs within the fashion industry, US brands are choosing consolidation over diversification, according to a 2026 study by the US Fashion Industry Association.
The study says: “Companies are moving beyond short-term crisis response and increasingly adopting longer-term strategies focused on supply chain optimisation, compliance capabilities and operational resilience.”
Due to this strategic shift, procurement teams within US fashion companies face the task of balancing existing supplier relationships with new agreements.
Respondents to the survey revealed that the impact of tariffs is the top business challenge for US fashion brands, jumping from fourth in 2024.
A new sourcing strategy
According to the US Fashion Industry Association’s study, the mission for fashion companies is to work “more closely with key strategic partners overseas that offer sourcing flexibility”.
Around 58% of US fashion brands are diversifying sourcing, which is a decrease from 83% in 2024.
This increase represents a shift in how procurement teams are managing supplier relationships, focusing on partnerships with a smaller number of vendors.
Renegotiating existing contracts with suppliers has increased from 61% in 2025, with 63% of companies agreeing extended deals with current suppliers in 2026.
Rise in nearshoring to battle tariffs
There has been a slight increase in domestic sourcing and nearshoring within the industry during 2026, the study found.
CAFTA-DR is a trade pact that involves the US, the Dominican Republic, Costa Rica, Guatemala, EL Salvador, Nicaragua and Honduras.
According to the study, 76% of respondents sourced its products from CAFTA-DR members, a 12% rise from 2025.
The free trade agreement between these countries reduces tariffs, but every CAFTA nation has its own overall tax requirements.
Nearshoring can appeal to procurement teams due to proximity,with more than 65% of respondents citing access to duty-free benefits as one of the most important incentives for sourcing from CAFTA-DR members and Mexico.
By choosing to strengthen relationships with existing suppliers over sourcing new agreements, procurement teams can mitigate tariff impact.