U.S. protectionist trade policy is hindering fashion industry onshoring efforts, with only 10% of respondents in the 13th USFIA Fashion Benchmarking Study citing increased U.S. sourcing as a tariff-response strategy. Released in July 2026, the report identifies tariff uncertainty — including a recent 50% levy on apparel — as a top concern for sourcing executives in 2026. Exempting CAFTA-DR and USMCA-qualified apparel from policy volatility is deemed essential for nearshoring. Structural constraints persist: U.S. apparel production accounts for under 2% of global output, and domestic lead times (12–16 weeks) lag far behind offshore alternatives (6–8 weeks). Industry responses include EU-aligned traceability support in India and the ALADIN circular textile initiative across France, Germany, and Italy.
According to www.just-style.com, U.S. protectionist trade policy is actively undermining fashion companies’ onshoring ambitions — with just 10% of respondents in the 13th USFIA Fashion Benchmarking Study identifying increased procurement of U.S.-made products as a strategic response to tariff hikes.
Low Adoption Amid Rising Trade Barriers
The study, released in July 2026, reveals a stark disconnect between policy intent and corporate action. While U.S. trade measures — including recently imposed 50% tariffs on apparel and other goods — aim to incentivize domestic production, they are instead increasing cost uncertainty and supply chain complexity. As a result, most fashion sourcing executives rank tariff policy and trade policy volatility among their top two concerns for 2026, according to industry data cited by Just Style.
Nearshoring Requires Policy Certainty
Nearshoring efforts — particularly those targeting Central America and Mexico — remain constrained without regulatory stability. The report stresses that exempting CAFTA-DR– and USMCA-qualified apparel products from tariff-related policy uncertainty is essential to supporting U.S. fashion companies’ regional sourcing strategies. These trade agreements cover key manufacturing hubs including El Salvador, Dominican Republic, Guatemala, and Mexico, where duty-free access currently depends on strict rules of origin compliance.
Structural Hurdles to Domestic Sourcing
Beyond tariffs, structural gaps limit U.S. onshoring capacity. Domestic textile and apparel manufacturing has declined steadily since the early 2000s, with U.S. apparel production falling to less than 2% of global output by 2024. Meanwhile, lead times for domestically sourced garments average 12–16 weeks, compared to 6–8 weeks for comparable orders from Vietnam or Bangladesh — a gap that erodes competitiveness despite tariff avoidance benefits.
Industry Response and Strategic Shifts
In response, many brands are pursuing hybrid models rather than full-scale reshoring. For example, PDEXCIL and AWARE are jointly assisting India’s powerloom sector in aligning with EU traceability rules, enabling faster compliance for nearshored alternatives in Europe. Similarly, the ALADIN project — funded by the European Commission — aims to advance circular textile production across France, Germany, and Italy by 2027, offering scalable alternatives to conventional offshore sourcing.
Source: Just Style
Compiled from international media by the SCI.AI editorial team.
