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Making the UK fashion supply chain competitive in a protectionist world
Yahoo Finance· 2026-01-14 12:31
Core Insights - The UK fashion and textile supply chain is facing unprecedented challenges due to trade disruption, rising protectionism, higher domestic costs, and a fragile consumer climate, prompting a reevaluation of sourcing, manufacturing, and selling strategies [1][2] Group 1: Trade and Market Dynamics - Recent shifts in global trade policy, including US IEEPA tariffs and the removal of De Minimis, have significantly impacted UK fashion and textile businesses, coinciding with the industry's adaptation to post-Brexit trading realities [3] - The US has become a critical export market for many brands following the loss of frictionless access to the EU, with increased shipping costs and complexities disrupting established business models [4] Group 2: Risk Assessment and Supply Chain Resilience - Companies are now reassessing risk, focusing on the frequency and severity of disruptions rather than questioning if they will occur, leading to supply chain resilience becoming a core commercial priority [5] - The concept of "safe-shoring" is gaining traction, with businesses prioritizing political and regulatory stability in sourcing decisions rather than merely seeking the lowest unit costs [6] Group 3: Sourcing Strategies - Companies are increasingly interested in sourcing from countries that are less likely to face tariffs, sanctions, or trade barriers, with Morocco, Jordan, Türkiye, Egypt, and parts of Eastern Europe gaining attention [7] - The goal for many brands is to build a diversified sourcing network that mitigates risks across regions, rather than seeking a single perfect sourcing location [8]