Zurich, 4 April 2025 — The International Textile Manufacturers Federation (ITMF) has raised concerns over the sweeping tariff increases unilaterally imposed by the U.S. administration on imported textile and apparel goods. These actions are significantly disrupting global value chains and leading to higher prices for apparel in the U.S. market.
According to Mr. K. V. Srinivasan, President of ITMF, the tariff hikes are set to have a major impact on textile and apparel imports, particularly from countries that constitute the bulk of U.S. imports. Presently, about 95% of all apparel sold in the U.S. is imported, with top sourcing countries including:
- China (30%)
- Vietnam (13%)
- India (8%)
- Bangladesh (6%)
- Indonesia (5.5%)
These countries previously faced average import tariffs of 11–12%, but now see these rates escalating to 38–65%. In response, U.S. apparel importers are exploring alternative sourcing markets with lower tariffs. However, many such alternatives come with higher production costs, limited product offerings, or insufficient production capacity, making the transition challenging.
Efforts to reshore apparel manufacturing to the U.S. also face significant barriers. High domestic labor costs, a shortage of skilled workers, and the continued reliance on imported raw materials—now subject to elevated tariffs—make local production economically unviable for many manufacturers. The net effect, whether through costlier imports or expensive domestic production, will be a rise in consumer prices and inflation.
Mr. Srinivasan added:
“The trade policy pursued by the U.S. administration will disrupt textile and apparel supply chains, increase uncertainty, and drive up prices. Instead of unilateral tariff hikes across all product categories, a more constructive approach would involve international negotiations and collaborative policymaking.”