On a 30 March deadline, South China Morning Post forecasts the impact of the Iran War on consumer apparel pricing:
Tom Hussain | March 30, 2026
The following is an excerpt...
How much of the increased costs are passed onto customers, and how fast, depends largely on where a brand sits in the market.
Budget and mid-price labels tended to hold the line until inventories run out, then reprice, while premium brands were more likely to absorb “some portion” of the increase to protect customer loyalty, Khan said.
Either way, he agrees with analysts’ forecasts: expect clothing prices to be as much as 15 per cent higher by the end of the summer if the conflict persists.
Over in the United States, the world’s biggest consumer market, Julia K. Hughes, president of the US Fashion Industry Association, said most companies were offering the same answer when asked about the war’s impact on their business: “I don’t know.”
American retailers are not yet reporting shipping delays – most US-bound apparel avoids the disrupted Gulf routes – but Hughes expects the effects to be felt within weeks if disruptions continue.
“Everyone expects price rises,” she said.
Margins under fire
South Asian textile suppliers face a “sharp profit squeeze” because orders fixed months in advance leave little room to pass higher energy and fibre costs on to buyers, according to Jakir Ahmed, an analyst with industrial data firm IBISWorld.
The immediate effect is a damaging trifecta: unsold stock building up, delayed payments and freight costs piling on top of already elevated production expenses.