As sourcing executives caution that the absence of clear trade regulations is making supply chain planning, pricing tactics, and diversification initiatives more difficult, ongoing tariff uncertainty is placing pressure on American textile and clothing companies.
Julia Hughes, President of the US Fashion Industry Association, remarked that “uncertainty” is the term most frequently used to describe the current challenges facing the industry, emphasising how difficult it is to make informed decisions amid ongoing instability in the supply chain.
Hughes observed that importers, customs brokers, and buyers are currently facing a number of unresolved questions. She described the situation as unsettling, noting that conversations with brokers and those responsible for filing entries reveal significant uncertainty about how the process will unfold. Hughes emphasised that how customs will manage and handle the situation remains unclear.
Limited time remains for negotiations as the Trump administration’s most recent round of tariffs on a variety of products is scheduled to go into effect on 1st August. However, few nations have signed new trade agreements with Washington, and many of the continuing talks are vague, which has put many businesses in a limbo, according to industry sources.
Hughes noted that while most companies acknowledge the need to diversify—both in terms of sourcing locations and vendors—they are holding off on making definitive decisions until there is more clarity on tariffs. She explained that even once a decision to diversify is made, the shift is not immediate. Certifying a new factory, she pointed out, is a time-consuming process that involves more than just product quality. Compliance, logistics, and other operational factors add further complexity and delay. Hughes also highlighted the growing cost implications, stating that it is increasingly clear that prices are bound to rise.
Hughes observed that fashion brands are already reacting to tariff-related uncertainty by delaying or canceling orders, with current negotiations largely focused on determining who will absorb the cost of the tariffs. She explained that the impact is already being felt across the industry, as orders are being withheld and discussions with suppliers revolve around tariff responsibilities.
While there is growing interest in reviving apparel manufacturing within the United States, Hughes pointed out that significant structural challenges remain. She cited a recent example of a buyer evaluating sourcing options in Bangladesh, China, and the US. Although a capable manufacturer was found domestically, the cost was double that of international alternatives, making it financially unviable in the short term to shift production to the US.
