By Andre Claudio | April 29, 2025 10:00am
President Donald Trump’s renewed push for tariffs on Mexican goods is sending ripples through the denim industry.
Since taking office as the 47th president just over two months ago, Trump has signed multiple executive orders that have caused panic across the globe, including efforts to dismantle the Department of Education and reduce the federal bureaucracy. However, one order that has put the denim industry—along with many others like pharmaceuticals and automotive—on edge is the president’s plan to impose new tariffs on key trading partners, including Mexico.
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Dr. Sheng Lu, professor of apparel studies at the University of Delaware, is not as optimistic, though. Lu noted that if denim products made in Mexico do face new tariffs when exported to the U.S., their price competitiveness could be significantly impacted, potentially leading to a loss of market share.
Lu’s research for the “2024 Fashion Industry Benchmarking Study,” conducted in collaboration with the United States Fashion Industry Association, shows that a significant portion of U.S. denim imports from Mexico serve the mass and value market segments, where consumers are highly sensitive to price changes.
“While Mexico is a key supplier of denim products to the U.S. market, similar products are also widely available from Asian countries like Bangladesh and China,” he said. “Additionally, many ‘Made in Mexico’ denim garments incorporate U.S. cotton, yarns and fabrics through a regional supply chain. As a result, a decline in U.S. denim apparel imports from Mexico could also have a negative impact on the U.S. textile industry.”
Beyond the tariff increases themselves, Lu noted that a major concern for U.S. denim brands is the ongoing uncertainty surrounding trade policy. With no sourcing destination considered “safe” or immune to Trump’s tariffs, U.S. brands and retailers are hesitant to commit to expanding production in any country, he added.
“A significant increase in sourcing ‘Made in the USA’ products is unlikely due to limited production capacity,” he said. “Even sourcing diversification—once a widely adopted strategy to mitigate risk—may be less effective this time, as any country could be targeted.”