Well,
unsurprisingly there was one fellow dominating headlines in the apparel sector
last week.
The
apparel, textile and footwear sectors, globally in fact, continue to tread on
eggshells waiting for a hard and fast order to be passed by new US President
Donald Trump on tariffs, which he has promised are coming, but where and to
what degree remains a mystery.
While the industry appreciates the enhanced
crackdown on China which it says will – in the long term – serve to benefit US
textile producers, there is a significant degree of concern on the 25% tariff
hikes on goods from USMCA partners China and Mexico, which many say will hamper
efforts from US brands and retailers to nearshore production.
Equally of concern is a proposed tariff on
goods coming from Europe.
GlobalData has determined navigating
international trade is going to be one of the biggest challenges for retailers
in 2025, especially for those with highly globalised supply chains.
The sad reality is there’s not much that can
be done; Trump is going to do as Trump is going to do. The last time involved
imposing a swathe of tariffs on goods from China, which sent shockwaves through
the global apparel industry.
However, while there is concern about the
latest “new normal” and what this will create for the apparel textile and
footwear sectors, there seems to be less panic than there was the last time.
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Many of the industry experts Just Style
spoke to agreed consumers would feel the pinch the most. But there appeared to
be a quiet sense of “we’re going to be OK” resonating across the industry.
It’s important to consider that since
Trump’s last gig, the apparel industry has been through the wars – literally.
From Covid to natural disasters and global conflicts leading to a surge in
energy costs, shipping prices and production costs as well as the cost of
labour to a sector that is now subject to further requirements under several
pieces of legislation on ethical and environmental sustainability that have
been passed around the world.
Running a business in today’s fashion world
is no mean feat. But what is clear is many players have started to get their
ducks in a row; aligning themselves with expectations on sustainability and
labour rights and diversifying sourcing so they are not relying on a single
supplier country in the event of the worst happening.
It’s not the best-looking climate with
consumer confidence down on increased living costs. But the apparel sector is
all too aware there is always a future for fashion; it is an essential part of
daily life and it makes people feel good.
All that is left to do is ensure an agile
business that can withstand global pressures. Nobody is saying it will be easy,
but then nothing worth having ever is.
