Uncertainty,
the unknown, unpredictability — whatever you want to call it, Trump's constant
twists and turns on tariffs, the war on Ukraine and all other forms of
policymaking are wreaking havoc on the global fashion supply chain.
Last
week, Trump implemented his 25% tariffs against fashion and textiles from
Canada and Mexico amongst other products before delaying
them again for another month.
This time, the one-month suspension is for
duty-free goods that sit within the United States-Mexico-Canada Agreement,
which does include apparel and textiles.
This is good news you could argue, but in the wider scope of how global
financial markets work all of this to-ing and fro-ing on tariffs and not
knowing what’s going to come next — even in the short-term — increases market
volatility and reduces economic growth.
And to put that into perspective the Economic Policy Uncertainty Index,
shows January 2025 (when US President Trump took office) as having a higher
level of global uncertainty than the start of the Covid pandemic (April 2020).
The President of Ethiopia’s Hawassa
Industrial Park Investors Association (HIPIA) Hibret Lemma sums it up
perfectly. During a recent face-to-face chat in London he told Just Style: “Now
US President Donald Trump is in the picture nothing is certain.”
The global fashion supply chain is an
intricate web that relies on global trade and two-way partnerships. When it
works at its best it has the power to bring multiple countries together and can
help economies grow.
Sadly, as Robert P Antoshak, VP of Global
Strategic Sourcing at Grey Matter Concepts pointed out to Just Style’s readers
recently: If international relations suffer severe collateral damage (as is the
case right now) it can become increasingly difficult to resolve once the dust
settles.
And it would be easy to assume the biggest
unknown facing the fashion supply chain right now is Trump’s unpredictability
over tariffs.
But, it goes much further than that.
Trump’s handling of the war in Ukraine is of
equal if not greater importance to the wider fashion supply chain as high
energy costs throughout Europe and high inflation are all taking their toll on
garment manufacturers in every corner of the globe.