A recent report by Source Fashion, Source Home & Gift, and Insider Trends highlights the potential impact of proposed US tariffs on global sourcing strategies. The report, titled ‘The State of Sourcing Report’, suggests tariffs on goods imported into the US, particularly from China, could make near-shore sourcing more attractive for US retailers.

The report is based on a survey of UK retailers conducted in 2024. The survey found the majority of UK retailers (74 per cent) source internationally, with China being the most popular sourcing region (49 per cent). However, the report also notes that the UK is a close second at 42 per cent, followed by India (37 per cent) and Western Europe (33 per cent).

Table: Sourcing patterns

The report also notes that US president elect Donald Trump, has proposed tariffs on goods imported into the US from overseas, particularly from China. If these tariffs come into effect, they could make sourcing from further afield, such as China, less appealing for US retailers. The report suggests several factors could make near-shore sourcing more attractive for US retailers in light of potential tariffs. Near-shore sourcing can help reduce the costs associated with transportation, logistics, and labor. It can help to improve supply chain agility and responsiveness. Near-shore sourcing can also help reduce the risk associated with global events, such as political instability and climate change

The report also notes the potential for political and climate disruption is likely to have an impact on sourcing decisions going forward. This could see retailers adopting a more agile approach to their supply chains, with a greater focus on near-shore sourcing. In addition to the potential impact of US tariffs, the report also highlights a number of other factors that are likely to influence sourcing decisions in the coming years. These include:

Sustainability: The report notes sustainability is becoming an increasingly important factor for retailers when making sourcing decisions.

Technology: The report also notes technology is playing an increasingly important role in sourcing, with a number of companies now using technology to improve the efficiency and transparency of their supply chains.

The report concludes by suggesting the retail industry is in a state of flux when it comes to sourcing. Retailers are facing a number of challenges, including the potential impact of US tariffs, the growing importance of sustainability, and the increasing role of technology. As a result, retailers will need to be agile and adaptable in their sourcing strategies in order to succeed in the years to come.

By Fashionating World
https://www.fashionatingworld.com/new1-2/proposed-us-tariffs-may-make-near-shore-sourcing-more-attractive