Trump's 'Liberation Day' tariffs could reshape the fashion industry as we know it. Here's what's at stake.
Jessica Binns | April 3, 2025
In less than three months, President Donald Trump has upended global trade with a wave of tariffs aimed at allies and adversaries alike, stoking fears that the escalating dispute could spiral into a full-blown trade war and push the US economy toward recession. Now, he’s announced reciprocal tariffs on more than 180 countries and territories — an unprecedented move that could amount to a no-holds-barred assault on the global flow of goods.
For the fashion industry, with its deeply entrenched, Asia-centric supply chains, the stakes couldn’t be higher. ...
Despite years of strategic decoupling to reduce an overreliance on Made in China, fashion remains deeply exposed to Asia, leaving many brands vulnerable to the latest trade disruptions. Last year, more than 60 per cent of apparel imports into the US came from China, Vietnam and Bangladesh, the world's top three clothing producers, says Julia Hughes, president of the United States Fashion Industry Association (USFIA).
While Vietnam is also subject to tariffs, viable production alternatives remain limited, making it a desirable option for brands looking to lower their costs. Shifting
manufacturing is not an overnight solution — production schedules require four to six months of planning, and capacity constraints present a significant challenge. In the short term, relocation options are scarce.
Bangladesh has some capacity to absorb the overflow from shifting supply chains, but persistent concerns around labor conditions, safety, and political unrest make it a less attractive alternative, according to Vincent Quan, associate professor at the Fashion Institute of Technology (FIT). Brands are acutely aware of the reputational risks tied to sourcing decisions, and few are willing to invite scrutiny or negative press.
It’s unclear whether Trump intends these reciprocal tariffs as a bargaining chip or a long- term strategy. “It seems that some in the administration say the tariffs will be used to negotiate access to foreign markets, which means they could go away soon,” Hughes notes. “Or are these tariffs part of a long-term strategy to bring manufacturing back to the US?”
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