New york: Ongoing tariff uncertainty is putting pressure on US textile and apparel firms, as sourcing executives warn that the lack of clear trade rules is complicating supply chain planning, pricing strategies, and diversification efforts, Xinhua reported.
According to BERNAMA News Agency, Julia Hughes, president of the US Fashion Industry Association, addressed the issue during a panel discussion at Texworld NYC, the largest textile sourcing trade show on the US East Coast. Hughes emphasized the difficulty faced by importers, customs brokers, and buyers due to unanswered questions surrounding the tariffs. She expressed concerns about how these matters will be managed by customs, stating, “It’s kind of scary talking to the brokers and the folks who are filing their entries — how this will proceed is something we just don’t know.”
The Trump administration’s latest round of tariffs on various imports is scheduled to take effect on August 1, leaving minimal time for negotiations. Despite this looming deadline, few countries have secured new trade agreements with Washington, and the details of ongoing discussions remain sparse, leaving many firms uncertain about their next steps.
Hughes highlighted the need for companies to diversify their sourcing locations and vendors but noted that most are hesitant to make definitive moves until the tariff situation becomes clearer. “You can’t certify a new factory overnight. That takes a long time,” she explained, pointing out the challenges related to quality, compliance, and logistics that complicate diversification efforts.
The financial impact of the tariffs is becoming increasingly apparent. Laura Siegel Rabinowitz, a trade lawyer at Greenberg Traurig, observed that importers are already experiencing significant cost increases due to existing tariffs. Retailers are closely monitoring these rising expenses, which are affecting their bottom lines.
Hughes also noted that fashion brands are delaying or cancelling orders as they negotiate with suppliers over who should shoulder the tariff costs. The uncertainty has affected the entire industry, with orders being held back and negotiations ongoing.
While there is interest in US-based apparel manufacturing, Hughes pointed out the high costs involved. A recent comparison of manufacturing options in Bangladesh, China, and the US revealed that US prices remain prohibitively high for many buyers.
Despite the challenges, some companies are striving to adapt. Chris Warren, vice president of sales and merchandising at menswear brand Turtleson, acknowledged the complexities posed by tariff uncertainty. His company maintains flexibility in pricing while focusing on unique and marketable products.
Elena Brandyberry, founder and CEO of her namesake brand, echoed these sentiments, highlighting the difficulty in balancing cost increases with maintaining product quality. “Everything is going to be more expensive, so we need to be prepared to produce better products with good quality,” she said.