Tariffs aren’t swaying fashion brands toward domestic sourcing

Core Insights - The Trump administration's tariff policies have not significantly influenced U.S. fashion companies to increase domestic sourcing according to a 2025 Fashion Industry Benchmarking Study [1] Group 1: Tariff Impact - All 25 surveyed fashion companies expect higher tariff and trade barrier costs this year, with around 70% reporting delays or cancellations of sourcing orders due to tariff hikes [2] - Adjusting procurement networks is the most common strategy for mitigating tariff impacts, with over 80% of respondents planning to diversify their production footprint to other countries and regions [3] Group 2: Sourcing Preferences - Approximately 44% of respondents indicated plans to expand sourcing from the Western Hemisphere, while 17% aim to increase sourcing of 'Made in the USA' apparel and textiles [4] - About 40% of surveyed companies reported sourcing goods from the U.S., consistent with the previous year's report [4] Group 3: Challenges in Domestic Production - Higher tariffs disadvantage U.S.-based production as they increase costs of raw materials sourced from other countries, affecting the price competitiveness of domestically made apparel [5] - Despite interest in shifting production to the Western Hemisphere, significant challenges remain for U.S. fashion brands [5] Group 4: Sourcing Landscape - Asia remains the primary apparel sourcing base for U.S. fashion companies, although there is a trend to reduce sourcing from China to low single-digit percentages [6] - Countries such as Vietnam, Bangladesh, Cambodia, and Indonesia are becoming more attractive alternatives for sourcing [6] - U.S. domestic suppliers are perceived as lacking in product diversity, agility, flexibility, and vertical integration compared to key Asian suppliers, which are critical factors for navigating the current trade environment [7]