As Donald Trump readies himself to be officially inaugurated as the 47th president of the United States of America, the nation’s apparel and textile sectors brace for impact, certain there will be a swathe of changes to the usual way of conducting business.

Trump is set to sign “close to 100 executive orders” on his first day in office which he confirmed during a speech on Sunday (19 January) and apparel and textiles are likely to be impacted.

American Apparel and Footwear Association president and CEO Steve Lamar told Just Style: “The next 100 hours, and 100 days, will be a time of whirlwind proposals, executive orders, and announcements, many of which will affect our industry.”

“Indeed, we are already seeing activity at the state level and know that the incoming Trump Administration and the new Congress will also be active,” he added.

“Whether these actions will occur with respect to tariffs and trade, immigration, environmental policy, technology, intellectual property rights, logistics, or more, we look forward to seeing the details and work with our members to fashion the appropriate responses. As we encounter a new policy framework amid the political transitions in Washington and around our country this month, our industry’s steadfast commitment to ensuring the sale of only authentic, responsibly made, and ethically sourced fashion remains unwavering.”

Three ways apparel could be impacted by Trump’s new administration

Just Style caught up with other members of the US apparel, textile and footwear sectors to uncover the most likely proposals and their potential impact on the wider industry.

1. Tariffs

Tariffs are absolutely expected to come into play early on in Trump’s presidency.

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Earlier this month Trump promised to place tariffs of at least 10% on all goods coming into the US. For products coming in from China, tariffs would be more than 60%.

Consider China – although dependence on it for apparel, textile and footwear has reduced – it remains the largest supplier of apparel goods to the US.

In the most recent set of import data from the US Office of Textiles and Apparel (OTEXA) in November, apparel and textile shipments from China surged by 15.8% to 690m square meter equivalents (SME).

This means apparel sourcing from China is likely to become very costly for US retailers and brands.

Dr Sheng Lu, professor of apparel studies at the University of Delaware told Just Style the apparel sector would need to quickly evaluate its short-term to long-term impacts.

“For example, a China-focused tariff action may lead to a different response strategy from US fashion companies compared to an across-the-board tariff measure against many US trading partners. Besides the anticipated higher tariff burdens, US fashion companies will be equally concerned about the policy uncertainty they will face and the rising regulatory compliance costs that may be incurred. Additionally, how US trading partners, particularly those leading apparel-supplying countries, might respond to the new Trump tariffs could also affect US fashion companies’ sourcing decisions in the coming months.”

Earlier the National Retail Federation warned if new tariffs on imports to the US are implemented, US consumers could lose between $46bn and $78bn in spending power each year.

Meanwhile, United States Fashion Industry Association (USFIA) president Julie Hughes noted: “The top worry is tariffs”.

“Will Day One be “tariff armageddon?” Or will it be the start of negotiations with key trading partners under the threat of tariffs? We are watching for that signal.”

Beyond this, she said immigration actions and how supply chains would be impacted would also be something she’d be looking out for.

But she reiterated: “The real focus will be to see what happens with tariffs and how quickly they may go into effect.”

GlobalData retail analyst Neil Saunders pointed out tariff policy is the “biggest potential disruptor for apparel as it will impact costs and shake up supply chains.”
“Quite what form these take and how they are implemented remains to be seen, but the fashion sector will be looking for clarity,” he added.

2. Tax breaks

Next up, a growth plan aimed at bolstering US businesses involves lower taxes with less regulation. The priority will be to extend expiring tax cuts above cutting spending. Inevitably, this will result in a sharp hike in US debt over the next decade.
Lu said the policy has political popularity, mainly centred around its potential to boost domestic production.

“The US domestic textile and apparel manufacturers may take advantage of the opportunity to advocate for policy support, such as eliminating the de minimis loophole and increasing tariffs on finished apparel imports from Asia. However, it remains to be seen whether the new Trump administration would promote the idea of a “Western Hemisphere supply chain” and treat US apparel imports from this region differently from the rest of the world.

“Meanwhile, the most recent data shows that from 2023 to 2024, the value of US textile manufacturing (NAICS 313) went up by 1.4%, whereas the value of US apparel manufacturing (NAICS 315) decreased by 15.4%. In other words, the prospect of “Made in the USA” could vary among different segments of the US textile and apparel industry, disregarding the policy action taken by the Trump administration.”

While Saunders noted deregulation will be another area President Trump addresses early on.

He suggested: “Firms will likely welcome his light-touch approach. They will also hope for action to bring energy prices down as this impacts so many parts of the fashion supply and production chain.”

Gherzi Textil partner Bob Antoshak believed much of Trump’s policy change would centre around strengthening US production and lowering reliance on external forces.

He said this could result in voicing support for de minimis and tariffs on other countries besides China, like Mexico and Canada.

He also warned of a potential reworiking of other trade policies like the USMCA.
“He may refuse to support the renewal of AGOA, but he may support a refresh of CAFTA-DR. Illegal immigration will be a priority for Trump as he takes office. It’s possible the CAFTA region may get bottled up in new US border policies with implications for the CAFTA workforce.”

3. Policies impacting the wider economic landscape

Tackling inflation is a priority for Trump which he hopes will ignite an economic boom and boost confidence in the American dream.

Ahead of his inauguration, he vowed prices would come down resulting from an expanded US oil and gas production, thus lowering energy costs. But onlookers worry about his pledge to lower inflation, which largely falls outside of presidential control.

Nevertheless, it’s something the industry is hopeful for.

“How the Trump administration’s policy actions will impact the US economy, particularly inflation, will be on the radar of US fashion companies. Given that the apparel industry is buyer-driven, consumers’ purchasing power and their confidence in their household finances directly influence their demand for apparel, thereby affecting the business performance of fashion companies,” said Lu.

There are concerns of how some of his policies contradict others. On the one hand the plan is to lower inflation, but GlobalData warns the inflationary effect of immigration policies “might be even worse than tariff hikes. And his advocacy for tariffs on Chinese imports will likely only serve to heighten inflation and market volatility.

By Just Style