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Many apparel brands had already factored potential tariffs into their forecasts, but the ever-shifting trade landscape makes it nearly impossible to plan effectively. “So many brands are playing a waiting game and are ready to respond once they know more,” Saunders says. The latest wave of tariffs is not just another chapter in the ongoing reshaping of global trade — it is a structural shift accelerating long-standing trends. Rita McGrath, professor of management at Columbia Business School, compares the impact to two past crises: the policy-driven trade war of 2018 and the system-wide shock of the pandemic. “We’re witnessing a structural shift in globalisation that was already well underway but has now accelerated dramatically,” she explains. Though the ‘China-plus-one’ sourcing strategy — where companies extend their supply chains beyond China to combat over-reliance — has been in motion for years, these reciprocal tariffs are intensifying the need for far more aggressive diversification. Rather than a temporary disruption, brands must see this as part of a broader geopolitical realignment reshaping global trade. The most resilient companies will be those that build supply chains not just for cost efficiency, but for agility, transparency and long-term stability, McGrath says. Despite years of strategic decoupling to reduce dependence on ‘Made in China’, fashion remains deeply exposed to Asia, leaving many brands vulnerable to the latest trade disruptions. Last year, more than 60 per cent of apparel imports into the US came from China, Vietnam and Bangladesh, the world’s top three clothing producers, says Julia Hughes, president of the United States Fashion Industry Association (USFIA).Officials I May Be Color Blind But I Know I Look Great In This Green Shirt
While Vietnam is also subject to tariffs, viable production alternatives remain limited, making it a desirable option for brands looking to lower their costs. Shifting manufacturing is not an overnight solution — production schedules require four to six months of planning, and capacity constraints present a significant challenge. In the short term, relocation options are scarce. Bangladesh has some capacity to absorb the overflow from shifting supply chains, but persistent concerns around labour conditions, safety and political unrest make it a less attractive alternative, according to Vincent Quan, associate professor at the Fashion Institute of Technology (FIT). Brands are acutely aware of the reputational risks tied to sourcing decisions, with few willing to invite scrutiny or negative press.
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