WASHINGTON, DC —April 2, 2025—We are deeply disappointed by the Trump Administration’s decision to impose new tariffs on all imports. This action will particularly affect American fashion brands and retailers. Some of the major suppliers for U.S. imports and the major customers for U.S. exports are targeted with the substantial “worst offender” tariffs. The fashion industry depends on global supply chains more than perhaps any other sector of manufactured goods. For instance, a bale of cotton might be grown in Texas, shipped to Europe to be spun into yarn, sent to Korea for fabric production, then to Vietnam for garment assembly, and finally to the U.S. for retail sale—back in Texas. Additionally, these garments may be sold not only in the U.S. but also in global markets such as Singapore, Japan, Dubai, or London.
While tariffs can be a useful tool in addressing unfair trade practices, they disproportionately impact the fashion industry. U.S. imports of textiles and apparel are subjected to some of the highest tariff rates. For example, in 2024, the average tariff on steel was 5%, while the average tariff on apparel was a staggering 14.6%. The following graphic, courtesy of Dr. Sheng Lu at the University of Delaware, highlights the significant disparity between the tariffs on textile and apparel imports and those on other U.S. imports:
These tariffs also unfairly burden American families, particularly lower-income households, which spend a higher percentage of their income on apparel and footwear compared to wealthier Americans. For example, the base tariff on a cashmere sweater is 4%, while the tariff on a lower-cost acrylic sweater is 32%. Furthermore, women are disproportionately affected by a “pink tax,” as women’s and unisex apparel are taxed at a higher rate than men’s apparel for the same type of product. An investigation by the U.S. International Trade Commission found that “the tariff burden for U.S. households on women’s apparel was $2.77 billion more than on men’s clothing.”
Moreover, the reality is that high tariff rates are unlikely to bring manufacturing back to the U.S. Despite the $13.2 billion in tariffs collected by CBP in 2024 (accounting for 16.6% of all tariffs collected) and an additional $2.48 billion from Section 301 trade remedies on textile and apparel goods, the percentage of apparel made in the U.S. remains just 3%. The textile and apparel industry has been paying higher tariffs for decades with little impact on reshoring manufacturing.
We urge the President and Administration trade officials to reconsider these tariffs and focus on supporting American families and American companies with lower costs and the benefits of trade.
About the United States Fashion Industry Association
The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade. USFIA represents textile and apparel brands, retailers, importers, and wholesalers based in the United States and doing business globally; working to eliminate tariff and non-tariff barriers that impede the industry’s ability to trade freely and create economic opportunities in the United States and abroad with the goal of doing what we can to make the world a better place for our customers, our colleagues, and our suppliers.
