Tariff uncertainty threatens global apparel industry

The International Apparel Federation (IAF) represents the
apparel manufacturing community across more than 40
countries—a global industry comprising hundreds of thousands of companies and millions of employees. Apparel and
textiles are among the most globalized industries, historically
foundational to industrial development around the world.
The punitive tariffs introduced by the US administration,
with the highest rates reserved for countries heavily reliant on
garment exports to the U.S., represent a direct and
unprovoked threat to entire industries. These measures risk
destabilizing economies and jeopardizing the livelihoods of
countless employees and entrepreneurs in the apparel
industry globally, including in the U.S. itself.
The IAF welcomes the decision to pause a significant portion
of these punishing tariffs. However, the continued application
of punitive tariffs on imports from China—one of the world’s
largest apparel exporters—remains deeply concerning and
underscores the real and ongoing risk of tariff escalation for
other nations. We implore that future trade negotiations have
reasonable goals and that punishingly high tariffs on apparel
do not return. Many apparel-exporting countries lack the
domestic purchasing power to significantly boost imports from
the U.S., making it unrealistic and unreasonable to demand
steep trade balance corrections. Likewise, high tariffs will not
realistically result in the large-scale return of apparel
production to the U.S.
For IAF members, what has not been paused is the harm
inflicted by the creation of a climate of tariff uncertainty (and,
in the case of China a punitive reality). With global supply
chains still recovering from the COVID-19 pandemic, the Red
Sea crisis, and weakened consumer confidence, the
unpredictability of trade policy discourages investment and
further undermines market stability and consumer
confidence. Preventing the return of these harmful tariffs
must be a top priority—followed by restoring a stable,
predictable trade environment. Only then can we begin the
critical work of re-evaluating global supply chains.
To be clear, no supply chain resilience strategy can withstand
a tariff tornado of this scale. Nevertheless, going forward, our
industry must reduce its vulnerability to sudden policy shifts.
This requires expanding the foundation of competitiveness
beyond cost alone. The IAF advocates for stronger, smarter,
and more sustainable supply chains—anchored more in
long-term partnerships, business sense, and mutual
interdependence and less dependant on trade political
decisions.
This has been the IAF’s core message in all of its publications
and events for the past decade. In line with this, IAF will
intensify its global initiatives to empower manufacturers and
their associations to act as strategic partners in the industry
transition that we need—investing in people, processes, and
technology. Resilient supply chains are built together.
Weathering this tariff crisis also requires a joint effort. We
therefore urge brands and retailers to work collaboratively
with manufacturers by honoring sourcing commitments,
maintaining standards, and avoiding cost shifts that threaten
supply chain viability.
The apparel industry is and always will be a global industry,
with trade as an integral and indispensable part of it. IAF
stands with the global manufacturing community, committed
to unity and collective strength to be able to weather this
storm and then to move to a stronger position together.
Through collaborative approaches and strategic partnerships,
we can build a more resilient and sustainable future for the
global apparel industry— one that benefits all stakeholders
across the value chain and ensures long-term prosperity
despite policy turbulence.



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