Goods
coming from anywhere in the world into the US will be subject to a 10% tariff
as of 5 April, with further reciprocal tariffs added to dozens of others that
include some key fashion trading partners.
In
an address at the White House Rose Garden, US President Donald Trump said: “For
decades, our country has been looted, pillaged, raped and plundered by nations
near and far, both friend and foe alike … our country and its taxpayers have
been ripped off for more than 50 years, but it is not going to happen any more.
“This is one of the most important days, in
my opinion, in American history. It’s our declaration of economic independence.
For years, hard-working American citizens were forced to sit on the sidelines
as other nations got rich and powerful, much of it at our expense, but now it’s
our turn to prosper.”
Reciprocal tariffs will begin on 9 April and
will include a 20% duty on goods from the European Union.
China and Mexico have been omitted from the tariff announcement in a turn of
events.
But key fashion trading partners have been
hit hard including China whose total levies are now over 50% following a 34%
increase announced on 2 April.
India too has seen a sharp tariff increase
of 26% while Thailand has seen a 36% increase in tariffs for US-bound goods.
Goods coming from Cambodia are subject to a
49% duty increase and from Bangladesh, 37%.
Pakistani imports will see a 29% tariff hike
while Myanmar imports are subject to a 49% tariff increase.
The UK is to be hit with a 10% tariff hike.
An earlier report from Aston
Business School said Trump’s tariffs introduce “substantial economic
disruptions”, exposing clear vulnerabilities stemming from the UK’s reliance on
critical markets such as the US and the EU.
“However, these disruptions also offer
strategic opportunities for adaptation and repositioning, the report read.
“Navigating this challenging economic landscape requires agile policy
responses. Despite the complexity of current trade dynamics, the UK’s independent
trade policy framework allows for quicker and more targeted actions, enabling
it to adapt proactively to shifting global conditions. Policy measures could
include diversification of supply chains, strategic engagement in alternative
markets, and fostering resilience by reducing dependencies on tariff-impacted
regions.
“Ultimately, a proactive and responsive
approach will be essential in mitigating risks and enhancing the UK’s economic
stability and competitiveness amid escalating global trade tensions.”
“Reduced exports from the UK”
Adam Mansell, CEO of UKFT, said: “The
US is the UK’s second largest export market for fashion and textiles and the
new US tariff regime will benefit no-one.
“It will lead to reduced exports from the UK
and will impact UK fashion and textile manufacturers, at time when they are
already facing unprecedented cost increases.
“Although the 10% tariff on UK exports is
lower than the 20% on EU products, it adds to existing tariffs, making some
luxury fabrics from the UK subject to a 35% tariff in the US. At the same time,
UK retailers and brands that manufacture in countries such as Vietnam and
Bangladesh and ship directly to the USA will face huge increases in costs. The
new US tariffs will also mean increased prices for US consumers, and it will
make the cost of raw materials for US manufacturers more expensive.”
“Fashion brands, retailers to be
particularly affected”
Commenting on the announcement, the USFIA
said it was “deeply disappointed” by the Trump Administration’s decision to
impose new tariffs on all imports.
“This action will particularly affect
American fashion brands and retailers. Some of the major suppliers for US
imports and the major customers for US exports are targeted with the
substantial “worst offender” tariffs.
“The fashion industry depends on global
supply chains more than perhaps any other sector of manufactured goods. For
instance, a bale of cotton might be grown in Texas, shipped to Europe to be
spun into yarn, sent to Korea for fabric production, then to Vietnam for
garment assembly, and finally to the US for retail sale — back in Texas.
Additionally, these garments may be sold not only in the US but also in global
markets such as Singapore, Japan, Dubai, or London.
“While tariffs can be a useful tool in
addressing unfair trade practices, they disproportionately impact the fashion
industry. US imports of textiles and apparel are subjected to some of the
highest tariff rates. For example, in 2024, the average tariff on steel was 5%,
while the average tariff on apparel was a staggering 14.6%.
“Moreover, the reality is that high tariff
rates are unlikely to bring manufacturing back to the US. Despite the $13.2bn
in tariffs collected by CBP in 2024 (accounting for 16.6% of all tariffs
collected) and an additional $2.48bn from Section 301 trade remedies on textile
and apparel goods, the percentage of apparel made in the US remains just 3%.
The textile and apparel industry has been paying higher tariffs for decades
with little impact on reshoring manufacturing.
“We urge the President to reconsider these
tariffs and focus on supporting American families and American companies with
lower costs and the benefits of trade.”
“Reciprocal
tariff to result in nearly $35bn in total tariff duties on apparel sector
products“
Sheng Lu, professor of apparel studies at
the University of Delaware, agreed the reciprocal tariff would significantly
increase the tariff burden for US fashion companies and those domestic apparel
manufacturers that rely on imported textile raw materials.
“Based on my rough estimation using the
import data in 2024 as the base, the reciprocal tariff would increase the
average US import tariff rate for yarns and fabrics from 6.3% to 21.0%, an
increase from 8.4% to 28.4% for made-up textiles and a jump from 14.5% to 30.6%
for apparel. Assuming the value of US textile and apparel imports in 2025
remains unchanged from 2024, the reciprocal tariff would result in nearly $35bn
in total tariff duties on these products — an increase of $19.9bn compared to
the current tariff levels.
“While the announcement of the details of
the reciprocal tariff clarified some previous questions in our minds, it raised
many additional questions. For example, how long will the tariff last? How will
US trading partners respond and retaliate? How will the reciprocal tariff
affect the US economy, inflation, and consumers’ demand for clothing? Will US
fashion companies cancel sourcing orders? Will the World Trade Organization
step in?
“One thing is certain, though — fashion
companies will have to continue to navigate a highly turbulent business
environment, keep their sourcing and supply chain flexible, and monitor the
ripple effect of the reciprocal tariff.”
“There is no escape from tariffs”
GlobalData retail analyst Neil Saunders said
the tariffs came as no surprise but the comprehensiveness of the new regime was
“shocking” with some very high rates.
“What has been confirmed today is that there is no escape from tariffs. Every
company that imports is going to have to deal with higher costs that result
from this new way of conducting trade.
“There will be some distinct challenges for
fashion as many of the countries listed like Vietnam, Cambodia, Indonesia,
Bangladesh and so forth are important locations for textiles and fashion. Nike,
for example, makes 97% of sneakers in Vietnam, Indonesia and China.
“The good news is that retailers and brands
now have certainty. The hard work starts now in terms of working through this
and finding ways to mitigate and offset the higher costs.”
“True
liberation would have involved eliminating this high tariff burden”
American Apparel & Footwear Association
(AAFA)’s president and CEO Steve Lamar said: “Before today’s so-called
‘Liberation Day,’ the average tariff on clothes, shoes, and accessories,
necessities every American must buy, was already more than five times higher
than on other US imports. True liberation would have involved eliminating this
high tariff burden and relieving US consumers of its regressive and
misogynistic effects, rather than layering on more costs that fuel inflation.
While we welcome President Trump’s focus on reducing foreign trade barriers, we
need to reduce America’s high trade barriers as well and do so in a predictable
manner that enables long-term investment and supply chain decisions. For
companies that had been in a ‘wait and see’ mode, the chaos of the last few
months, coupled with the confusion from today’s announcement, has only created
more uncertainty.
“While the President touts ‘America First’
policies, this tariff plan overlooks its destructive impact it will have on the
US manufacturers in our industry. These American companies depend on foreign
inputs which have no, or very few, American substitutes. Tariffs will
significantly increase the cost of manufacturing in the US, and, when paired
with the retaliatory tariffs that will surely come, will undermine US export
opportunities as well.”
“More tariffs equal more anxiety and
uncertainty for American businesses and consumers”
National Retail Federation EVP of Government
Relations David French said consumers would be hardest hit by the tariff
reveal.
“88% of voters say that small businesses
play an important role in their local economy, according to an NRF poll
conducted by Morning Consult. These tariffs will have a disproportionate impact
on local communities and will be particularly harmful to small retailers.
“Tariffs are a tax paid by the US importer
that will be passed along to the end consumer. Tariffs will not be paid by
foreign countries or suppliers.
“Even more so, the immediate implementation
of these tariffs is a massive undertaking and requires both advance notice and
substantial preparation by the millions of US businesses that will be directly
impacted.
“We encourage President Trump to hold
trading partners accountable and restore fairness for American businesses
without creating economic uncertainty and higher prices for American families.”
“The major uncertainty that remains
will freeze new investments.
Cem Altan, president of the International
Apparel Federation, said the announcement “creates a new reality affecting
billions of dollars of investments and the lives of tens of millions of people
working in our industry globally.”
“Ultimately, someone will have to pay the
price for all of this. In this context, IAF will be vigilant about
deteriorating purchasing practices. The new reality also requires a careful
analysis and the IAF will be working with its membership on a full joint
apparel manufacturing industry position.”
“This decision is like going back in
time”
EURATEX, which represents the European
textile and clothing industry told Just Style the US is EU’s fifth most
important trading partner, with total trade exceeding €9bn ($9.95bn).
It added that US customers enjoy high end
fashion items, but also technical textiles coming from Europe, so adding a 20%
duty will hamper that relationship.
EURATEX director general Dirk Vantyghem
warned against this tariff escalation. He said: “This decision is like going
back in time; it will lead to a loose-loose relationship within the global
textile industry. EURATEX stands for free but fair trade, based on common rules
which are respected by all; the EU and the US should lead by example, and
promote high quality and sustainable textile products.”
“Mexico,
Canada decision will provide neashoring incentives“
The National Textile Organisation’s Kim Glas
applauded the president on the reciprocal tariff plan and preserving
US-Mexico-Canada Agreement (USMCA) qualified goods.
Glas said: “The US textile industry ships
$12.3bn, or 53%, of its total global textile exports to Mexico and Canada and
those component materials often come back as finished products to the United
States under the USMCA. It is by far the largest export region for American
textile producers, representing $20bn in two-way trade that spurs enormous
textile investment and employment in the United States.
“Preserving duty free, qualified trade is
absolutely critical to the US textile industry and will provide incentives for
more companies to onshore even greater production capacity, giving a boost to
American textile manufacturers and their workers.”
“Global apparel and textile sector
would greatly benefit from negotiations and collaborative policymaking”
K. V. Srinivasan, president of the
International Textile Manufacturers Federation (ITMF) pointed out US importers
are exploring alternative sourcing options in countries with lower tariffs.
“However, many of these alternatives have
higher production costs and often lack the required product ranges or
production capacities.
“Reshoring apparel manufacturing to the US
would also pose significant challenges. Labour costs are substantially higher,
and many essential textiles for apparel production would still need to be
imported—now at increased costs. Additionally, the US faces a shortage of
skilled workers in the apparel sector. Whether through higher tariffs on
imports or costly domestic production, the outcome will be increased apparel
prices, ultimately contributing to higher inflation.
“The trade policy pursued by the U.S.
administration will disrupt textile and apparel supply chains, increasing
uncertainty, and driving up prices. Rather than implementing unilateral tariff
hikes across all product categories, it would be far more beneficial for the
global textile and apparel industry if governments engaged in negotiations and
collaborative policymaking.”
By Just Style