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HomeEventsUS Tariffs Threaten Global Garment Sector

US Tariffs Threaten Global Garment Sector

Manufacturers Call for Shared Responsibility as tariffs put industry, workers and sustainability at risk

The latest escalation of punitive tariffs by the US administration risks destabilizing the global garment and textile industry. Starting August 7th, 2025, most apparel imports from key producing countries will face additional US tariffs, mostly in the range of 15% to 25%. Even though this is lower than those announced on April 2nd, they still represent a sharp increase in costs. Combined with a higher level of uncertainty for business this creates a more challenging environment for workers’ rights and progress on environmental sustainability. Manufacturers united under the International Apparel Federation (IAF), the Sustainable Textiles of the Asian Region (STAR) Network and the joint IAF-STAR Program, Sustainable Terms of Trade Initiative (STTI), raise alarm. Their joint message to the US administration, buyers and retailers: “Tariffs hurt everyone, including Americans. Buyers must uphold Responsible Purchasing Practices now more than ever”.

Tariffs Hurt More Than They Help

The garment and textile sector is one of the most globalized industries in the world, employing over 75 million people—most of them women. The current US tariffs will not bring jobs back to the US, nor will they strengthen the domestic industry. Instead, they will:

  • Increase clothing prices for US consumers, disproportionately affecting low-income households
  • Negatively impacting sales and profits for companies
  • Push production to happen in a rushed and unsustainable way
  • Undermine ongoing commitments to fair labor and environmental protection
  • Risk job losses and factory closures in manufacturing countries

“These measures mirror the uncertainty of the COVID period,” said a representative from the STTI. “Only this time, it’s man made.”

Supply Chains Cannot Absorb the Shock

Suppliers operate on thin margins, with wages fixed by national regulations and rising costs for materials and logistics. With little-to-no room to absorb a cost increase of up to 40%, suppliers warn that passing these shocks onto them could undo years of progress on decent work, wages, and sustainability. As suppliers are hit, so too will every job and businesses connected to them – putting every level of the value chain at risk.

Uphold Responsible Purchasing Practices

STTI calls on brands and retailers to honor existing commitments to Responsible Purchasing Practices (RPP), including:

  • Fair payment terms
  • Predictable and transparent order planning
  • Shared risk especially in times of crisis
  • No last-minute cancellations or retroactive discounts
  • Responsible exit

“Now is not the time to abandon our standards as clearly stated in the White Paper of STTI,”said a STTI representative. “Responsible brands will continue to share costs fairly, just as we agreed to in better times and as a lesson from COVID.”

A Call for Strategic, Collaborative Trade Policy

Manufacturers are urging policymakers, brands and retailers to recognize that global trade resilience depends on fairness, predictability, and long-term collaboration.

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