Industry federations sound the alarm: “Tariffs will hurt, not help”

The U.S. government's decision to impose sweeping new tariffs on apparel and footwear imports has triggered a wave of alarm from industry associations, who argue forcefully that these measures will inflict significant economic damage far outweighing any potential benefits.

The industry's opposition

The American Apparel & Footwear Association (AAFA), one of the industry's most prominent trade groups, has led the charge in opposing the new measures. "The math is simple," stated AAFA President and CEO Steve Lamar. "Ninety-seven percent of all clothing and shoes purchased in the U.S. are imported — predominantly from Asia. These tariffs are essentially a tax on American families."

The scale of the policy shift is hard to overstate. New tariff rates now stand at 54 percent for China, 46 percent for Vietnam, 37 percent for Bangladesh, and 27 percent for India, according to data compiled by Morningstar and the Budget Lab at Yale. These are not marginal adjustments — they represent an overhaul of trade terms for nearly the entire U.S. fashion supply chain.

The industry federations' core argument is that these tariffs are not a solution to strengthen domestic industry; they are a counterproductive measure that undermines the competitiveness of American businesses and reduces consumer purchasing power.

Devastating impact on businesses and consumers

The industry’s central concern is that tariffs will do little to encourage domestic manufacturing, while inflicting immediate damage on businesses and consumers alike. "Tariffs don't create jobs," said a spokesperson from the Footwear Distributors and Retailers of America (FDRA). "They create cost pressures. And those pressures will be passed along the chain — often ending with the shopper."

Multiple federations have highlighted the impossibility of reshoring production in the short term. "The U.S. simply doesn't have the capacity," said Julia Hughes, President of the United States Fashion Industry Association (USFIA). "Our members have spent years building reliable, efficient sourcing networks. Overnight tariffs throw a wrench into operations, pricing, and delivery schedules."

According to Spectrum News, some brands had already begun diversifying away from China in anticipation of trade tensions, pivoting to countries like Vietnam and Bangladesh. But now, those countries are also affected — effectively eliminating any safe harbor. The National Retail Federation (NRF) has also voiced concern, particularly for its smaller members who lack the buffer to absorb rising costs. "Big retailers may be able to weather this storm," said NRF spokesperson Scott Mason. "But independent stores, e-commerce startups, and boutique brands will face hard choices: cut margins or raise prices."

And consumers? They’re unlikely to escape unscathed. Analysts estimate that average apparel prices could rise by 8 percent, potentially adding 7 to 10 dollars per garment, depending on complexity and segment. For footwear, the added cost could range from 3.80 dollars for low-end shoes to 15 dollars or more for premium products. An 8 percent increase in apparel prices translates to a significant burden for families on a tight budget, forcing them to make difficult choices about spending. Tariffs also reduce consumer choice by making imported goods more expensive, limiting access to a variety of styles and price points. Increased footwear prices disproportionately affect families with children, who require frequent replacements due to growth.

A call for alternative solutions

In its formal response, the AAFA urged policymakers to reconsider the tariff escalation and focus instead on long-term industrial strategy, innovation incentives, and workforce development. "We share the goal of strengthening U.S. manufacturing," said Lamar, "but tariffs alone aren't the answer. They are a blunt instrument that will have unintended consequences." Instead of fostering domestic production, tariffs increase the cost of doing business, forcing companies to cut costs elsewhere, potentially leading to job losses in related sectors like retail and logistics. Increased tariffs force companies to absorb higher input costs, reducing profit margins and limiting investment in innovation. Smaller retailers, with less financial flexibility, may be unable to compete with larger players who can absorb costs or negotiate better deals. The uncertainty created by tariffs disrupts long-term planning, making it difficult for businesses to invest in new equipment or expand operations.

International organizations are also watching closely. The International Apparel Federation (IAF) warned that the U.S. measures could destabilize trade flows and stifle collaboration at a time when the industry is trying to rebuild after years of pandemic-related disruption and inflationary shocks.

As the debate unfolds, what’s clear is that friction between policy goals and economic realities is intensifying. The industry federations' message to policymakers is unequivocal: these tariffs are a counterproductive measure that will ultimately harm American businesses, stifle consumer spending, and impede the long-term health of the U.S. economy.

Euratex, the European Apparel and Textile Confederation, reminds that the US is the EU 5th most important trading partner, with total trade exceeding 9 billion euro. American customers enjoy high end fashion items, but also technical textiles coming from Europe. Adding a 20 percent duty will hamper that relationship.

Euratex Director General Dirk Vantyghem warned against this tariff escalation: "This decision is like going back in time; it will lead to a loose-loose relationship within the global textile industry. Euratex stands for free but fair trade, based on common rules which are respected by all; the EU and the US should lead by example, and promote high quality and sustainable textile products.”