The global textile and apparel industry in 2025 will be defined by its ability to navigate a world of rising protectionism, shifting geopolitical alliances, and increasing demands for sustainability, writes Gherzi Textil Organisation partner Robert Antoshak.

Whew, what a trip! For me, that sums up 2024. As so many commentators have noted, we live in a time of significant change. To see evidence of that, look no further than the election of Donald Trump as president of the United States. Who could have predicted that?

But his election by a disgruntled American electorate heralds the end of the age of neoliberal economic and trade policy. Open markets, laissez-faire economic policy, and free trade will enter a period of restricted trade and economic realignment. In many ways, Trump’s economic and trade policies during his first term will only be heightened and intensified in his second term.

The fashion industry, garment makers, and textile mills are caught in the middle of such change. One of the world’s most globalised businesses now finds itself vulnerable yet again, although this time, it’s not from the spread of a virus but rather from the reaction to previous economic policies.

What can apparel learn from 2024?

Long influenced by shifting consumer preferences and economic cycles, the global textile and apparel industry faced an incredibly transformative 2024. In addition to ongoing issues of sustainability and digitalisation, emerging geopolitical tensions and trade policies reshaped the industry’s supply chains and market dynamics. With the Trump administration re-emerging in 2025 and influencing global trade frameworks, the stakes for adaptation have never been higher.

A key takeaway from 2024 was the growing impact of trade policies on global supply chains. While the industry has historically thrived on globalisation, new protectionist measures signalled a fundamental shift. With the Trump administration returning in 2025, early indications point to a revival of tariffs on Chinese imports and renegotiating existing trade agreements. The reinstatement of “America First” policies could increase costs for US-based brands reliant on overseas manufacturing.

Moreover, this shift underscores the importance of diversification. Southeast Asia and Latin America will continue gaining momentum as alternative production hubs. Yet, these regions face hurdles, including limited infrastructure and workforce training, which must be addressed to replace China’s dominance effectively. As 2025 unfolds, companies should consider developing reshoring and nearshoring strategies to build resilience against protectionist policies.

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Geopolitical tensions and the fragmentation of supply chains

Geopolitical tensions, already a dominant theme in 2024, are set to escalate in 2025. The US-China rivalry intensified this year, influencing trade flows, investment decisions, and corporate strategies. For the textile and apparel industry, re-escalating tariffs and potential bans on critical raw materials from China could disrupt production timelines and increase costs.

Simultaneously, Europe’s push for greater autonomy in trade and stricter sustainability regulations add complexity for global brands. The European Union is expected to continue enforcing stringent import standards, including environmental benchmarks, which could exclude non-compliant producers from the market.

Other regions are also reshaping the trade landscape. The African Continental Free Trade Agreement (AfCFTA) is promising, but political instability in the continent may dampen its immediate impact. India, which gained traction in 2024 as an alternative sourcing destination, faces geopolitical challenges as it balances trade partnerships with the US, China, and Europe.

Sustainability amid geopolitical pressures

Sustainability remained a top priority in 2024, driven by consumer demand and regulatory changes. However, achieving sustainability goals in 2025 will become more complicated amid geopolitical pressures. The Trump administration’s less aggressive stance on climate change contrasts sharply with Europe’s green mandates, creating a fragmented regulatory environment for global companies.

More so, this divergence will force brands to adopt regional strategies for compliance. For example, companies operating in Europe will need to meet carbon neutrality goals and circular economy standards, while those in the US might prioritise cost efficiency over environmental investments. Such fragmentation risks diluting progress on global sustainability initiatives unless multinational corporations lead with unified strategies across markets.

The role of technology in navigating complexity

Digital transformation, already a cornerstone of industry initiatives, will be even more critical in 2025. As trade policies and geopolitical tensions create volatility, technology offers solutions to improve efficiency and agility. Advanced supply chain management tools powered by artificial intelligence can help brands anticipate disruptions and identify alternative sourcing options in real-time.

Additionally, blockchain technology gained traction in 2024 for its ability to enhance transparency and traceability — a vital asset amid growing scrutiny of labour and environmental practices. In 2025, investments in digital twins and predictive analytics will further streamline product development and inventory management, offering a competitive edge in an increasingly fragmented global landscape.

Workforce implications of reshoring and automation

Reshoring, accelerated by geopolitical uncertainty and import tariffs, gained momentum in 2024. However, this shift has exposed a gap in skilled labour in regions like the US and Europe. As companies bring production closer to home, they face the dual challenges of higher wage costs and the need for workforce upskilling.

Automation provides a potential solution. Investments in robotics and AI-driven production systems could offset labour shortages and rising costs. Yet, the transition to automation raises ethical and social questions, particularly in developing countries that rely on textile and apparel manufacturing as a significant source of employment.

Indeed, 2025 will require a balanced approach — embracing automation while ensuring inclusive growth. Workforce development programmes and equitable trade policies will be essential to avoid exacerbating economic disparities.

Market diversification and the rise of regional trade

The lessons of 2024 underscored the importance of market diversification. As geopolitical tensions escalated, overreliance on any single region, particularly China, proved risky.

Bolstered by favourable trade agreements with the US, Latin America emerged as a key nearshoring destination for North American brands. The CAFTA region remains a work in progress, but gains were made in 2024. Meanwhile, Africa’s potential as a manufacturing hub grew thanks to investments under the AfCFTA framework.

However, these opportunities come with challenges. Political instability, inadequate infrastructure, and limited access to capital remain significant barriers in many emerging regions. Long-term investments in local ecosystems will be critical for companies seeking to capitalise on these markets in 2025.

Prospects for 2025: Navigating a complex landscape

As we approach 2025, the global textile and apparel industry will face a future shaped by political uncertainty, economic fragmentation, and technological innovation. Despite these challenges, the industry’s adaptability offers hope for progress.

Regardless of protectionist attitudes, globalisation has not disappeared but is instead morphing into increasingly significant regionalised trading zones. Regional trade agreements – like CAFTA-DR – offer opportunities to reduce dependence on traditional production hubs, while collaborative initiatives with local governments and communities will enhance the viability of these markets.

Companies must remain vigilant as trade policies evolve under the Trump administration. Building diversified supply chains and leveraging free trade agreements in emerging markets will be crucial to mitigating risk. While geopolitical tensions complicate sustainability efforts, brands must remain focused. Investments in green technologies and partnerships with innovative suppliers can bridge the gap between compliance and meaningful progress.

The continued adoption of AI, blockchain, and automation will provide solutions to manage complexity. These tools will be instrumental in creating resilient and transparent supply chains. Amid growing scrutiny, brands must prioritise authenticity and transparency in their consumer interactions. Ethical sourcing and localised marketing strategies will build trust and loyalty.

Buckle-up for 2025

The global textile and apparel industry in 2025 will be defined by its ability to navigate a world of rising protectionism, shifting geopolitical alliances, and increasing demands for sustainability. While the challenges are formidable, they also present opportunities for innovation and growth.

The industry must embrace a forward-thinking approach, leveraging technology and collaboration to adapt to a changing business environment. By balancing global ambitions with local investments and sustainability with profitability, the industry can not only survive but thrive in a complex and dynamic environment. But make no mistake, there will be costs and setbacks.

The lessons of 2024 serve as a blueprint for the year ahead, one in which resilience and adaptability will determine the industry’s success. The market appears stronger going into 2025. Let’s hope that next year, the industry can keep the momentum going.

By Just Style