On a 2 January deadline, Sourcing Journal reports on tariffs' effect in 2025.
Katie Nashimura | January 2, 2026
All 90 countries hit with tariffs will see more “visible and significant” impacts to their exports to the U.S. in 2026, though. Apparel as a category will be particularly hard hit by new duties, and Lu believes fashion firms “will face increased pressure to control their sourcing costs and protect their profit margins.”
With that scenario as a backdrop, fashion companies will likely turn to diversification to navigate market and trade policy uncertainties, he added. A 2025 Fashion Industry Benchmarking Study released by the U.S. Fashion Industry Association (USFIA) showed a record number of U.S. fashion brands and retailers (over 80 percent) were sourcing from 10 or more countries. Nearly 60 percent of them said their sourcing portfolios would continue to expand in 2026, and they’re looking for vendors with the ability to produce across multiple countries to mitigate risk.