Home World Tariffs pose major threat to U.S. apparel industry, small brands feel the strain

Tariffs pose major threat to U.S. apparel industry, small brands feel the strain

by bodhiwire
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San Francisco, April 24 – U.S. apparel makers, including niche brands like menswear label 3sixteen, are bracing for a significant rise in production costs due to tariffs on imported textiles, a development that experts warn could have an outsized impact on the fashion sector.

Although 3sixteen assembles its premium $250 jeans domestically in San Francisco, the brand imports its selvedge denim from Japan—renowned for its artisanal, labor-intensive denim manufacturing. Tariffs on these imports are likely to increase costs substantially, forcing small firms to consider raising prices or reevaluating their sourcing strategies.

“Even though we make our jeans in the U.S., we rely on Japanese denim. The tariffs are really going to hit us,” said Andrew Chen, co-founder of 3sixteen. “Setting up a fabric facility ourselves isn’t an option—we just don’t have the expertise or capital.”

According to the United States Fashion Industry Association, about 98% of clothing sold in the U.S. is imported. China remains the top supplier and has borne the brunt of recent tariff increases under former President Donald Trump’s trade policies.

While some brands are shifting production to countries like Vietnam, India, or South Korea to offset rising costs, U.S.-based production remains largely unviable. Apparel manufacturing in Asia is not only cost-effective but also benefits from vertical integration—factories that produce fabrics, trims, and components in-house, drastically reducing lead times and costs.

“The manufacturing ecosystems in Asia are highly advanced,” said Phyllis Sevachko, a consultant at Stateless Design & Consulting. “Relocating production to the U.S. would require major investment in infrastructure and skilled labor, which is neither cheap nor immediately feasible.”

Sonia Lapinsky of AlixPartners, a consultancy that advises fashion retailers, added that American consumers—accustomed to low-cost fashion—may resist the price hikes needed to support domestic manufacturing.

“The reality is, we’ve been trained to expect cheap goods,” said Lapinsky. “Without trade policy stability, companies are unlikely to invest heavily in U.S. manufacturing capabilities.”

Despite the challenges, Chen says 3sixteen will continue sourcing denim from Japan and may pass along some of the increased costs to consumers.

“We’re committed to quality, but these tariffs definitely put pressure on small brands like ours,” he said.

Industry analysts caution that without comprehensive trade reforms and infrastructure investment, the broader U.S. apparel sector could face prolonged disruption and rising prices.

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