Navigating U.S. tariffs in the textile and footwear industry: the role of key supply chain partners
The global trade landscape is undergoing a seismic shift, with tariffs challenging how and where products are made. For the textile and footwear industry, this has created more challenges than opportunities. Brands are grappling with rising costs, disrupted supply chains, and the need for greater agility. Amid this complexity, Trimco Group has already proven itself a trusted partner to several brands, helping them navigate these turbulent waters through a global supply chain built for resilience and adaptability.
The impact of tariffs on the industry
Tariffs are essentially taxes on imports, and the textile and footwear industry bears a disproportionate burden. In the U.S., the average effective tariff rate on apparel and footwear is over five times higher than on other imports. This translates into higher costs for brands and consumers alike.
For instance:
/ A 10% tariff on imported apparel can raise retail prices by 3% to 5%, squeezing profit margins.
/ The "pink tariff" imposes an additional 3% on women's clothing and footwear compared to men's, adding billions in extra costs annually. (‘Pink tariffs’ cost women more than $2 billion a year | U.S. Congresswoman Lizzie Fletcher)
/ Logistics costs for U.S. companies have risen by 10% to 15% due to these tariffs.
Adding to these challenges, fluctuating trade policies have complicated long-term planning for brands and importers. According to the National Retail Federation (NRF) and Hackett Associates, the uncertainty surrounding tariff changes has led to significant shifts in import strategies. Retailers have resorted to frontloading shipments during periods of low or delayed tariff increases to mitigate costs. However, this has also resulted in a year-end slowdown in import volumes, with major U.S. ports reporting their lowest levels since March 2023.
Despite these challenges, NRF projects steady consumer demand, with 2025 holiday sales expected to rise between 3.7% and 4.2% to just over $1 trillion. This underscores the importance of maintaining agile and resilient supply chains to meet consumer expectations while navigating tariff complexities.
Trimco Group as a partner: A global network built for change
In this volatile environment, flexibility is key. Trimco Group’s global manufacturing footprint spans Asia, Europe, and the Americas, offering brands the agility they need to adapt. Here’s how Trimco Group supports brands in navigating the complexities of tariffs:
- Strategic relocation of production: With facilities across multiple regions, Trimco helps brands pivot production to minimize tariff impacts. For example, relocating trim production from high-tariff regions to more cost-effective locations.
- Localized sampling and production: Trimco enables brands to set up sampling and production in new regions quickly, reducing lead times and costs.
- Maintaining consistency and quality: Despite shifting production locations, Trimco ensures that quality and brand standards are upheld, providing peace of mind to partners. Our structure offers flexibility and ensures global consistency.
- Sustainability goals and compliance: Trimco’s commitment to sustainable practices and compliance with international trade regulations ensures that brands can meet consumer expectations and legal requirements.
- Cost management: By leveraging its global network, Trimco helps brands optimize their supply chains, keeping costs under control without compromising on quality.
- Seamless production shift management: Powered by a cloud-based system, Trimco Group ensures effortless support for production shifts.
Local support in North America
Trimco Group’s extended team in North America provides brands with local support, ensuring faster response times and tailored solutions. With Trimco Group Los Angeles, Trimco Group Canada, and the addition of Nexgen Packaging (soon to be fully integrated within Trimco Group), brands benefit from a robust network of experts who understand the unique challenges of the North American market.
This local presence allows Trimco Group to:
/ Offer hands-on support and consultation to brands navigating tariff complexities.
/ Provide quicker turnaround times for sampling and production.
/ Ensure seamless communication and collaboration with partners across the region.
/ Deliver customized solutions that meet the specific needs of brands in North America.
How could your brand benefit?
Consider a footwear brand facing a 25% tariff on components sourced from China. By partnering with Trimco, the brand can relocate production to a lower-tariff region, set up localized sampling to speed up product development, and maintain consistent quality across markets. With the added advantage of having a local North American team, the brand receives immediate, on-the-ground support to address challenges and implement solutions effectively. This mitigates the cost impact and positions the brand for long-term success in a competitive market.
What to do next?
The evolution of tariffs is still underway; thus, the need for agile and resilient supply chains will only grow. Trimco Group’s global presence, combined with its expertise in the textile and footwear industry, makes it an invaluable partner for brands navigating this new reality. By providing the tools and support needed to adapt—both globally and locally—Trimco helps brands adapt and thrive in a world reshaped by US tariffs.
Want to know more about our support navigating the US tariffs landscape? Get in touch with our team.
Sources:
Fashion Tariffs 101 | American Apparel and Footwear Association
‘Pink tariffs’ cost women more than $2 billion a year | U.S. Congresswoman Lizzie Fletcher