Who imports the most? U.S. apparel giants brace for soaring tariffs

The global apparel trade is a complex web of production and consumption, with certain nations playing dominant roles as importers. While the United States is a significant player, understanding the full picture requires examining broader international trade flows.

In 2023, the European Union emerged as the world's leading apparel importer, bringing in approximately 204 billion dollars (around 188 billion euros) worth of clothing. The United States followed closely, with apparel imports reaching about 90 billion dollars (83 billion euros), according to Statista.

These major importers rely heavily on production from developing economies, primarily in Asia, where cost-effective manufacturing has been a dominant strategy for decades.

U.S. apparel giants brace for soaring tariffs

Within this global context, major American apparel retailers are facing a new challenge: a wave of tariffs imposed by the U.S. government that could reshape pricing strategies and disrupt global supply chains. The latest round of duties has introduced sharp increases on clothing imports from leading supplier countries, raising alarm across the U.S. industry. The U.S. fashion sector is uniquely exposed, with approximately 97 percent of all clothing sold in the United States being imported, mostly from Asia, according to Spectrum News. This heavy reliance on foreign manufacturing—long a cost-saving strategy—has now become a liability in the face of aggressive trade policies.

The largest U.S. apparel importers face higher tariffs

Data from US import data on US clothing and apparel imports shows a dynamic landscape where more than 1,700 active importers and buyers connect with over 1,400 apparel suppliers across the globe.

Top clothing and apparel importers and buyers in the USA

Source : US Import Data, “List of 1700+ Clothing & Apparel Importers and Buyers in USA”, 2024

Retail giants like Walmart, Gap Inc., and Nike source large volumes of apparel from key manufacturing hubs, many of which are now targeted by the revised U.S. tariffs. The new tariff rates are as follows:

While companies had anticipated the risk of China-specific tariffs and responded by diversifying their sourcing strategies, the inclusion of multiple manufacturing hubs in this round of tariff hikes leaves few alternatives.

The National Retail Federation (NRF) has expressed significant concern over these developments. NRF President and CEO Matthew Shay stated, “Tariffs threaten to hurt consumers, jeopardize job creation and increase the cost of doing business here in the United States.” a quote taken up by Hollandandstockforltd. And While most garments sold in the U.S. are sourced from low-cost manufacturing hubs such as China, Bangladesh, or Vietnam, many American retailers also import premium and designer pieces from Europe.

Walmart, Target, TJX (parent company of T.J. Maxx and Marshalls), and Amazon rank among the top importers, according to data from Panjiva. These companies span a wide range of price segments, from mass-market basics to higher-end collections. Retailers like Saks, Nordstrom, and Bloomingdale’s, which carry a greater share of European-made luxury items, could be more directly impacted by the new tariffs on goods originating from the EU.

Varying impacts on retailers

The extent of the impact will vary based on each company’s sourcing mix and agility. For those heavily reliant on European production, the added customs costs could trigger price hikes, margin squeezes, or even sourcing shifts. Brands may be forced to reassess their pricing strategies in a context already shaped by inflation and cost-conscious consumers.

Footwear brands are similarly affected. Last year, China and Vietnam exported a combined 18.5 billion dollars in shoes to the U.S., representing nearly 70 percent of total U.S. shoe imports. New tariffs now apply across price segments: a 10 dollars FOB pair of shoes will be hit with 3.80 dollars in additional cost, while high-end pairs costing 40 dollars FOB will incur a 15.20-dollar surcharge.

Who ultimately pays?

But who pays the price? Technically, tariffs are paid by the importer at the border. However, the extent to which these costs are absorbed by retailers, wholesalers, or passed down to consumers remains unclear. Factors such as contract structures, market competitiveness, and inventory cycles will all influence final retail pricing. Experts estimate that average clothing prices could rise by around 8 percent. For consumers, this means across-the-board increases—and for brands, a strategic dilemma. “Do we raise prices and risk losing market share? Or absorb the cost and take a hit on margins?” This is one question a mid-sized label executive could ask.

Ultimately, the U.S. government’s intention to strengthen domestic industry and reduce reliance on foreign labor comes up against economic realities. Only around 3 percent of clothing consumed in the U.S. is made domestically and reshoring is a long-term prospect, hindered by cost structures and workforce constraints. In the short term, American fashion brands are bracing for volatility. Higher tariffs, rising costs, and uncertain consumer sentiment make for a challenging runway ahead.