On a 23 July deadline, the Taiwan Textile Federation highlights USFIA's 2026 Benchmarking Study:
July 23, 2026
The following is translated into English via Google Translate from the original source.
According to the 13th Annual Fashion Industry Benchmarking Study 2026 released by the U.S. Fashion Industry Association (USFIA), amid continued volatility in the global trade environment, U.S. fashion companies are accelerating adjustments to their procurement strategies to cope with the impact of tariffs, including renegotiating contract terms with suppliers, diversifying their sourcing sources, and strengthening supply chain resilience.
The report points out that although trade policy remains the most pressing issue for fashion industry executives in 2026, many companies have gradually shifted from short-term crisis response to long-term supply chain planning, focusing on supply chain optimization, compliance building, and operational resilience enhancement to cope with the increasingly complex global economic and trade environment.
This study was conducted by Professor Sheng Lu and Research Assistant Emily Delaye of the Department of Fashion and Apparel Studies at the University of Delaware. The survey was from April to June of this year 2026, and interviewed senior executives of 30 major fashion brands retailers importers and wholesalers in the United States.
The survey results show that 92% of the surveyed companies believe that protectionist trade policies and related policy uncertainties (including tariff shocks) are one of the two most pressing challenges facing companies this year, followed by inflation and the overall economic outlook in the United States.
Among the overall operational risks faced by businesses, geopolitical management ranked fifth. Respondents pointed out that ongoing or emerging geopolitical tensions, such as the Russia-Ukraine war, Middle East conflicts, and U.S.-China relations are increasingly affecting global procurement, logistics, and business operations; among them, the U.S.-Iran conflict was listed as one of the major sources of risk that could disrupt the garment supply chain this year.
Compared to 2025, businesses are significantly more concerned about several challenges this year. Among them, rising production or procurement costs has jumped to the third largest challenge, while foreign protectionist trade policies and policy uncertainty continues to rank high. In addition, the importance of addressing the risk of forced labor has also increased significantly, rising four places from last year, indicating that businesses are paying increasing attention to supply chain compliance requirements.
Regarding the actual impact of U.S. tariff policies, more companies reported a negative impact on their financial performance compared to a year ago, not only increasing procurement costs but also reducing resources invested in sustainable development and product innovation. However, companies are also actively taking various countermeasures, including applying for tariff refunds, renegotiating supplier contract terms, and accelerating the diversification of procurement sources to mitigate the impact of tariffs.
USFIA President Julia Hughes stated that it is “not surprising” that trade policy and tariffs have become the most pressing issues for businesses this year. She pointed out that the biggest difference this year is that Brands and retailers are shifting their strategies for dealing with tariffs and trade uncertainty, with successful sourcing models moving from an emphasis on “diversification” to “consolidation.”
Qu stated that as tariff challenges will continue to impact corporate costs and supply stability in the foreseeable future, companies are committed to maintaining a diversified geographical sourcing layout integrating their sourcing networks and establishing closer, long-term partnerships with overseas strategic partners who possess sourcing flexibility and strong legal compliance capabilities.
Julia Hughes further pointed out that fashion brands and retailers generally believe that the Trump administration's tariff policies have had a direct and significant negative impact on their business operations, including impacts on financial performance, increased procurement costs, and reduced resources available for new products development and innovation. She stated that compared to the past focus on “avoiding” tariffs, companies are now more inclined to manage tariff costs through diversified strategies, with the primary measure being applying for carefree funds under the international emergency economic Powers Act (IEEPA).
Furthermore, the United States has continued to escalate its tariff measures recently. On July 15th, the office of the United States trade representative announced a 25% tariff on Footwear imported from Brazil; meanwhile, on July 20th, president Trump announced a 50% tariff on Canadian imports (including apparel and textiles), indicating that the United States protectionist trade policies are continuing to intensify, and the global fashion supply chain will continue to face greater uncertainty and adjustment pressure in the future.