1:31 am, Friday, 23 May 2025

IAF urges global brands not to shift costs onto manufacturers amid US tariffs

The International Apparel Federation (IAF) has called on global brands and retailers to stand by their sourcing commitments uphold industry standards, and refrain from shifting costs onto manufacturers in the wake of the United States’ newly imposed punitive tariffs.

The federation warned that such actions threaten the viability of apparel supply chains and could destabilise entire economies.

IAF represents the apparel manufacturing sector in over 40 countries, encompassing a global industry made up of hundreds of thousands of companies and millions of workers.

Apparel and textiles are among the most globalised sectors, historically serving as a cornerstone of industrial development worldwide.

The federation warned that the punitive tariffs introduced by the US administration on April 2—targeting countries heavily reliant on garment exports to the US—posed a direct and unprovoked threat to entire industries.

IAF cautioned that the measures risked destabilising economies and jeopardising the livelihoods of millions of workers and entrepreneurs in the global apparel sector, including those in the United States.

Welcoming the decision to pause a significant portion of the punitive tariffs, IAF expressed concern over the continued application of such measures on imports from China—one of the world’s largest apparel exporters.

‘We implore that future trade negotiations have reasonable goals and that punishingly high tariffs on apparel do not return,’ it said in a statement issued on Thursday.

Many apparel-exporting countries lack the domestic purchasing power to significantly increase imports from the US, making demands for sharp trade balance corrections both unrealistic and unreasonable, the IAF said.

‘Likewise, high tariffs will not realistically result in the large-scale return of apparel production to the United States,’ it stated.

For IAF members, what has not been paused is the harm caused by the creation of a climate of tariff uncertainty—and in the case of China, a punitive reality—it said.

With global supply chains still recovering from the COVID-19 pandemic, the Red Sea crisis, and weakened consumer confidence, the unpredictability of trade policy discourages investment and further undermines market stability and consumer trust.

‘Preventing the return of these harmful tariffs must be a top priority—followed by the restoration of a stable, predictable trade environment. Only then can we begin the critical work of re-evaluating global supply chains.’

To be clear, no supply chain resilience strategy can withstand a tariff shock of this scale, the Federation said, adding that, nevertheless, the industry must reduce its vulnerability to sudden policy shifts going forward.

This requires broadening the foundation of competitiveness beyond cost alone.

The IAF advocated for stronger, smarter, and more sustainable supply chains—anchored more in long-term partnerships, sound business practices, and mutual interdependence, and less dependent on politically driven trade decisions.

‘Weathering this tariff crisis also requires a joint effort,’ it said, urging brands and retailers to work collaboratively with manufacturers by honouring sourcing commitments, maintaining standards and avoiding cost shifts that threaten supply chain viability.

The apparel industry is, and always will be, a global industry, with trade being an integral and indispensable part of it. IAF assured that it stands with the global manufacturing community, committed to unity and collective strength to weather this storm and move to a stronger position together.

‘Through collaborative approaches and strategic partnerships, we can build a more resilient and sustainable future for the global apparel industry—one that benefits all stakeholders across the value chain and ensures long-term prosperity despite policy turbulence,’ added the Federation.

IAF urges global brands not to shift costs onto manufacturers amid US tariffs

Update Time : 10:50:15 am, Sunday, 20 April 2025

The International Apparel Federation (IAF) has called on global brands and retailers to stand by their sourcing commitments uphold industry standards, and refrain from shifting costs onto manufacturers in the wake of the United States’ newly imposed punitive tariffs.

The federation warned that such actions threaten the viability of apparel supply chains and could destabilise entire economies.

IAF represents the apparel manufacturing sector in over 40 countries, encompassing a global industry made up of hundreds of thousands of companies and millions of workers.

Apparel and textiles are among the most globalised sectors, historically serving as a cornerstone of industrial development worldwide.

The federation warned that the punitive tariffs introduced by the US administration on April 2—targeting countries heavily reliant on garment exports to the US—posed a direct and unprovoked threat to entire industries.

IAF cautioned that the measures risked destabilising economies and jeopardising the livelihoods of millions of workers and entrepreneurs in the global apparel sector, including those in the United States.

Welcoming the decision to pause a significant portion of the punitive tariffs, IAF expressed concern over the continued application of such measures on imports from China—one of the world’s largest apparel exporters.

‘We implore that future trade negotiations have reasonable goals and that punishingly high tariffs on apparel do not return,’ it said in a statement issued on Thursday.

Many apparel-exporting countries lack the domestic purchasing power to significantly increase imports from the US, making demands for sharp trade balance corrections both unrealistic and unreasonable, the IAF said.

‘Likewise, high tariffs will not realistically result in the large-scale return of apparel production to the United States,’ it stated.

For IAF members, what has not been paused is the harm caused by the creation of a climate of tariff uncertainty—and in the case of China, a punitive reality—it said.

With global supply chains still recovering from the COVID-19 pandemic, the Red Sea crisis, and weakened consumer confidence, the unpredictability of trade policy discourages investment and further undermines market stability and consumer trust.

‘Preventing the return of these harmful tariffs must be a top priority—followed by the restoration of a stable, predictable trade environment. Only then can we begin the critical work of re-evaluating global supply chains.’

To be clear, no supply chain resilience strategy can withstand a tariff shock of this scale, the Federation said, adding that, nevertheless, the industry must reduce its vulnerability to sudden policy shifts going forward.

This requires broadening the foundation of competitiveness beyond cost alone.

The IAF advocated for stronger, smarter, and more sustainable supply chains—anchored more in long-term partnerships, sound business practices, and mutual interdependence, and less dependent on politically driven trade decisions.

‘Weathering this tariff crisis also requires a joint effort,’ it said, urging brands and retailers to work collaboratively with manufacturers by honouring sourcing commitments, maintaining standards and avoiding cost shifts that threaten supply chain viability.

The apparel industry is, and always will be, a global industry, with trade being an integral and indispensable part of it. IAF assured that it stands with the global manufacturing community, committed to unity and collective strength to weather this storm and move to a stronger position together.

‘Through collaborative approaches and strategic partnerships, we can build a more resilient and sustainable future for the global apparel industry—one that benefits all stakeholders across the value chain and ensures long-term prosperity despite policy turbulence,’ added the Federation.