August 5, 2025 Last week’s tariff developments added new layers of complexity. Access the key information you need to stay ahead with today’s edition plus AAFA’s Trade and Customs Committee updates. |
|
|
California Retail Bodies to Form Anti-landfill Org Aug 2: ... The independent, producer-led PRO will represent and ensure compliance of all producers of apparel and textile articles covered under the law, said the trio. It will also collaborate across the textile value chain, engaging and involving manufacturers, brands, retailers, collectors, sorters, recyclers, repair businesses and other parties that will drive innovation and maximize program impact. The bodies will furthermore devise a stewardship program that meets all requirements of the law and strengthens collection, repair, reuse and recycling infrastructure. “This partnership signals our industry’s commitment to collaborate in support of a circular transition,” said Steve Lamar, president and CEO, American Apparel & Footwear Association. (Source: AIM Group) |
U.S. Levies Threaten Textile Sustainability Goals Aug 1: ... While the new tariff regime relaxes some of the aggressive levies of the first round of tariffs on April 2, it still means apparel and textile exporters face the highest tariff rate at the US border since the 1930’s. Tariffs will be applied seven days as US Customs gears up to implement them. Many Asian suppliers (textile factories in Bangladesh, Vietnam, Myanmar, Cambodia) rely on US orders for survival and reports of delays, cancellations, or demands for discounts are now emerging as buyers react to new cost and supply uncertainties. Factories risk layoffs, and workers face wage or job losses. (Source: Ecotextile News) |
‘There’s No Work Now, Just Debt’: Cambodian Garment Workers Face Precarious Future as U.S. Tariffs Loom July 31: ... A 36% export tax imposed on Cambodia by US President Donald Trump is due to come into effect on 1 August. Trade talks between the US and Cambodia resumed after a ceasefire was agreed with Thailand after five days of border fighting, but on the eve of the deadline for setting rates no new deal had been agreed. The tariff is likely to put hundreds of thousands of jobs at risk, particularly in Cambodia’s garment, footwear and travel goods (GFT) sector – an industry that employs a million people, mostly women, according to the UN, and underpins the country’s formal economy. (Source: The Guardian) |
|
|
Parents Hit Back-To-School Shopping With Eye on Trump Tariffs Aug 5: ... “It accelerated the shipping season, so it brought it forward, and also brought forward the shopping season, so people did their purchases earlier,” said Steve Lamar, president and CEO of the American Apparel & Footwear Association. “They might have been much more willing to go out and purchase now, knowing that the tariffs will really begin to accelerate.” Lamar said, adding the tariff “uncertainty is having a chilling effect on sourcing, on investments, on hiring throughout the economy” and “also has a chilling effect on consumer behavior.” (Source: The Hill) |
Who Wins and Loses From Trump’s New Tariffs? Aug 4: ... Most of Asia’s fashion sourcing majors will now have to add a circa 20% tariff to their apparel production costs, so there is little competitive advantage between them based on these tariffs alone. Vietnam, Bangladesh and Sri Lanka all now face a 20% levy on fashion goods, while Cambodia, Indonesia, Thailand and Pakistan have all been given a 19% tariff. The biggest shocker and arguably the biggest blow was the 25% tariff that was placed on India. (Source: Just Style) |
Businesses Got Some Clarity on Trump’s Trade Deal. They Aren’t Reassured Aug 1: ... Trump’s much-hyped trade agreements were verbal — there hasn’t been any documentation backing up what the two sides agreed to. Already, major trading partners like the European Union and Japan have cast doubt on whether they could meet their investment and purchasing pledges, and Vietnam has not even publicly confirmed it agreed to the terms Trump announced in their supposed deal inked in early July. “I think the lens has become a little clearer” in terms of tariff rates, said Stephen Lamar, the president of American Apparel and Footwear association, which represents brands like J Crew and L.L. Bean that rely heavily on imports from countries like China and Vietnam. Lamar predicted that many of those duties “are probably going to be it for a while,” but added, “We don’t yet have enough information to make the kinds of long term decisions that need to be made right now, and even the shorter term decisions of, ‘how I’m going to price my spring collection?’” (Source: Politico) |
Trump’s New Global Tariffs Add to Risk of Higher Prices, Less Choice as Retail’s Spring Ordering Season Starts Aug 1: ... “Continued high tariffs from key sourcing countries, last-minute policy shifts, and unclear new requirements are creating the perfect storm for a difficult holiday season and a challenging spring,” said Steve Lamar, CEO of the American Apparel & Footwear Association. “America’s most popular brands and retailers are in a flurry of navigating the still-unpublished details of new trade deals. As they plan for Spring 2026, they’re weighing tough choices: whether to raise prices, cut jobs, or reduce the range of products offered to consumers,” he said.
The U.S. fashion industry already carries what Lamar called an “outsized share of the burden.”
In 2024, it accounted for less than 5% of all imports by value yet accounted for more than 25% of all tariffs the U.S. government collected. During the summer months, companies are typically in the advanced stages of planning and placing orders for the new year and spring seasons. Now, there’s a widespread hesitancy to make timely shipping and sourcing decisions. “To stay competitive, American companies need clear, final trade terms now; not uncertainty layered on top of already unsustainable costs,” Lamar said. (Source: CNBC) |
|
|
Deputy USTR Nominee Pledges Broader IP Enforcement Aug 1: Bryan Switzer, President Trump’s nominee for the deputy U.S. Trade Representative post covering Asia, textiles, investment, services and intellectual property, vowed during his confirmation hearing on Thursday to broaden enforcement actions on IP violations to target entire countries rather than narrower “one-off” methods employed previously. Appearing before the Senate Finance Committee on July 31, Switzer – a former longtime State Department official who goes by Rick – repeatedly endorsed the Trump administration’s vision of a stricter approach to China. (Source: World Trade Online) |
Fire Destroys Jakarta's Counterfeit Sneaker Market July 29: A massive fire engulfed Taman Puring Market in South Jakarta on Monday night, destroying approximately 500 stalls in one of the city’s most notorious hubs for counterfeit sneakers and second-hand electronics. Jakarta Governor Pramono Anung on Tuesday pledged to restore the damaged market and accelerate post-disaster recovery efforts. “The stalls were tightly packed and quite small. I’ve visited the site myself, and thankfully, there were no casualties,” he said on Tuesday. Taman Puring has long been known as a hub for bargain hunters, offering knockoff versions of branded footwear and apparel. Despite its underground reputation, the market remains a vital part of the local informal economy. (Source: Jakarta Globe) |
Trump Organization Says Amazon, Walmart, eBay Sellers Are Hawking Knockoff Shirts, Hats, Mugs July 28: The Trump Organization has filed a lawsuit against unnamed online merchants it said are hawking counterfeit merchandise promoting President Donald Trump. In the suit, filed Friday in U.S. District Court in Florida, the company accused the merchants of selling “inferior imitations” of Trump-branded products on several online marketplaces, including Amazon, Walmart, and eBay. The Trump Organization company, which is owned by Trump, sells a variety of branded merchandise through its website, including a gold T1 smartphone. The Trump Organization alleges the online merchants didn’t license its trademarks and weren’t authorized resellers of genuine merchandise. (Source: CNBC) |
|
|
AAFA Summer Interns (Devorah Schwartz, Josephine Scogna, and Jitey Ikuku) |
|
|
Thank you to AAFA's summer interns: Finishing their terms with AAFA last week, we'd like to thank all of our summer interns on the Policy team. Thank you very much to Jitey Ikuku from Howard University, Devorah Schwartz from George Washington University, and Josephine Scogna from Virginia Tech University for their dedication and amazing work during their time with the AAFA Policy Team! |
Tariff turbulence: Last Friday brought another wave of tariff announcements affecting our industry. While we’ve received a few more answers, many critical details that are necessary to support sound strategic decisions and continued innovation remain unresolved.
The AAFA team is here to help, offering key resources to navigate this turbulent time. AAFA encourages all members to have a representative on AAFA Trade & Customs Committee calls. If you do not already have this representation, please contact Beth Hughes or Maureen Storch. Visit the Fashion Tariffs 101 hub for our tracker of Trade Negotiations by Country, updated weekly. |
America250 supporting partners: Last week, AAFA hosted a briefing with the U.S. Semi-Quincentennial Commission to discuss plans for the 250th Anniversary of the United States in 2026. The conversation focused on how to get involved and integrate elements of the celebration into 2026 operations, branding, and communications. Thank you to Jennifer Condon, John Allen, and Rachel Gerli for your ideas and support. A recording is now available in the Member-only section of AAFA’s Learning Center. For more on ways to engage in lead-up to 2026 and during, contact Membership. To follow along on related announcements, follow #America250 #250YearsStrong. |
|
|
Call for Speakers closes this Friday: AAFA is looking for diverse industry experts from brands to share experiences, case studies, address challenges, and define best practices at the 2026 Product Safety & Compliance Conference. Event speakers provide AAFA members and industry attendees with expertise and thought-provoking perspectives to move the industry forward. Proposals must be submitted by this Friday, August 8. Service providers and suppliers must be an AAFA member company to submit a proposal. Questions? Contact Brielle Papalia. |
Member Welcome: PICO Manufacturing |
|
|
| Since 1931, Pico has been family-owned and operated, earning our reputation as the premier resource for all aspects of garment and brand-building needs. Innovation, product design, merchandising, and packaging design drive our high-quality imports of underwear and sleepwear for men, women, and children.
Our headquarters in the Garment District provides us with prime access to offer private labels to department stores, mass retailers, and specialty stores. Additionally, as a strategic partner, we hold the licenses for underwear and sleepwear for major brands.
|
|
|
| Visit our events calendar for all AAFA webinars, scheduled events, and member/committee calls. |
|
|
About the American Apparel & Footwear Association The American Apparel & Footwear Association (AAFA) is the national trade association representing apparel, footwear and other sewn products companies, and their suppliers, which compete in the global market. Representing more than 1,100 world famous name brands, AAFA is the trusted public policy and political voice of the apparel and footwear industry, its management and shareholders, its more than 3.6 million U.S. workers, and its contribution of more than $523 billion in annual U.S. retail sales. AAFA drives progress on three key priorities: Brand Protection; Supply Chain & Sourcing; and Trade, Logistics, & Manufacturing. AAFA approaches this work through the lens of purpose-driven leadership in a manner that supports each member’s ability to build and sustain inclusive and diverse cultures, meet and advance ESG goals, and draw upon the latest technology. |
|
|
|
