Global Textile Value Chains Face Uncertainty from U.S. Tariff Hikes.
The International Textile Manufacturers Federation (ITMF), the leading global association representing the world’s textile and apparel industry, has voiced strong concern over the United States administration’s recent move to unilaterally impose sweeping tariff increases on a broad range of imported goods. This decision is poised to significantly disrupt well-established global value chains and will likely result in higher consumer prices across the U.S., particularly in the apparel sector.
In a formal statement, Mr. K. V. Srinivasan, President of ITMF, emphasized the far-reaching implications of the new trade measures. “These substantial tariff hikes will have a major impact on textile imports, particularly apparel, into the U.S.,” he stated. “This is not just a national issue—it’s a global concern affecting the entire international supply chain.”
Currently, approximately 95% of all apparel sold in the United States is imported, with a significant share coming from key sourcing hubs including China (around 30%), Vietnam (13%), India (8%), Bangladesh (6%), and Indonesia (5.5%). These countries have historically been subject to import tariffs of about 11–12%, but under the new measures, those rates are expected to surge dramatically—potentially reaching between 38% and 65%, depending on the product category and country of origin.
As a direct consequence, many U.S. apparel brands and retailers are now urgently exploring alternate sourcing options in countries with lower tariffs. However, such transitions are neither simple nor cost-effective. Many alternative sourcing destinations have significantly higher production costs, lack adequate infrastructure, or do not offer the necessary product diversity or production capacity to fulfill current U.S. demand.
The concept of reshoring—bringing apparel manufacturing back to the U.S.—also faces serious obstacles. Not only are labor costs substantially higher compared to traditional sourcing markets, but the U.S. also lacks a sufficient pool of skilled workers in the apparel manufacturing sector. Additionally, many essential textiles and raw materials used in garment production would still need to be imported, now subject to increased tariffs. Whether through expensive domestic production or higher-cost imports, consumers are likely to bear the brunt of rising prices—further contributing to inflationary pressures.
“The trade policy currently pursued by the U.S. administration will disrupt textile and apparel supply chains, increase volatility, and drive up costs,” added Mr. Srinivasan. “Rather than implementing unilateral tariff hikes across all product categories, it would be far more constructive for the global textile and apparel industry if governments engaged in multilateral negotiations and collaborative policymaking.”
The ITMF continues to advocate for stable, transparent, and cooperative global trade frameworks—ideally under the auspices of the World Trade Organization (WTO) or within the context of mutually beneficial bilateral and regional Free Trade Agreements (FTAs). The federation urges stakeholders across the textile and apparel industry to remain engaged in open dialogue, calling on policymakers to prioritize long-term economic stability over short-term trade imbalances.
For further information on ITMF’s work and policy positions, please visit www.itmf.org or contact secretariat@itmf.org.
