U.S. Tariff Hikes To Spike Apparel Prices & Disrupt Global Supply Chains: ITMF President Srinivasan

The U.S. administration’s sweeping tariff hikes on imported goods are disrupting global textile and apparel value chains and pushing up apparel prices for American consumers.

This unilateral move marks a departure from the established global trade framework, traditionally governed by multilateral (WTO), regional and bilateral (FTA) agreements.

V. Srinivasan, President of the International Textile Manufacturers Federation (ITMF), warned that the substantial tariff increases will have a major impact on the U.S. imports of textiles and apparels.

“These substantial tariff hikes will have a major impact on textile imports, particularly apparel, into the U.S.,” Srinivasan emphasized.

Currently, around 95% of apparels sold in the U.S. are imported, with key sourcing countries including China (30%), Vietnam (13%), India (8%), Bangladesh (6%), and Indonesia (5.5%). Previously subject to tariffs of 11–12%, these countries now face rates soaring between 38% and 65%.

The U.S. apparel importers are actively seeking alternative sourcing destinations with lower tariffs. However, many of these alternatives come with higher production costs and limited product capabilities or scale.

Reshoring manufacturing to the U.S. poses its own set of challenges. Higher labour costs, continued reliance on imported textile inputs (now also more expensive), and a shortage of skilled workers in the domestic apparel sector make local production a costly proposition.

Whether through steeper import duties or expensive reshoring, the net result will be rising apparel prices, adding to overall inflationary pressure.

“The trade policy pursued by the U.S. administration will disrupt textile and apparel supply chains, increase uncertainty, and drive up prices,” Srinivasan stated, and further added: “Rather than imposing unilateral tariff hikes, governments should pursue dialogue, negotiation and cooperative policymaking for the benefit of the global textile and apparel industry.”