June 30, 2026 It’s a busy Fourth of July week in Washington! We’re celebrating the Semiquincentennial, watching closely as USMCA heads into review, and gearing up for a wave of comment submissions to USTR. This and more industry news in today's brief. |
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How New State and EU Regulations Will Reshape Fashion Supply Chains June 29: ... On top of supply chain issues, declining consumer sentiment, and inflationary pressure, the fashion industry is now facing regulatory pressure from multiple directions, spread across the US, as well as in Europe. In the US, a growing number of states have passed Extended Producer Responsibility (EPR) legislation, filling a vacuum left by federal rollbacks on Environmental Social Governance (ESG), creating a potentially fragmented market for brands operating nationally. (Source: Forbes) |
Trump Cited Forced Labor to Justify New Tariffs. Here’s What the Data Shows June 29: ... Yet, there appears to be little correlation between the prevalence of forced labor believed to be in a country and the level of tariffs imposed. According to data from Interos.ai, three of the top 10 countries for unethical labor (Mexico, Malaysia, and Bangladesh) are taxed at the lower rate of 10 percent. And several countries with little known forced labor, including Switzerland, New Zealand, Japan, and the United Kingdom are subject to the higher rate of 12.5 percent. (Source: Inc. Magazine) |
CARB Delays Emissions Reporting Deadline by 3 Months June 26: The California Air Resources Board updated its deadline to comply with the state’s emissions disclosure law, Senate Bill 253, giving covered companies an additional three months to disclose their scope 1 and scope 2 greenhouse gas emissions, CARB said in a bulletin Wednesday. The state agency said that it will delay the reporting deadline from Aug. 10 to Nov. 10. In addition to giving entities more time to comply with the law, CARB said it will be proposing “limited changes” to the rule. (Source: ESG Dive) |
Pingree Urges USDA to Expand Cotton Plan to Natural Fibers June 22: A Democratic lawmaker from Maine, Chellie Pingree, is urging the US Department of Agriculture to expand its newly announced Great American Cotton Plan into a broader platform that supports a wider set of natural fibers, including hemp, flax, wool and alpaca. In a letter to the department, she argued that global trends have upended the economics of offshore textile and apparel production and that federal policy should help reshore more of the value chain for American-made textiles. (Source: CropGPT) |
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If USMCA is Not Renewed, Analysts Expect Uncertainty for Businesses June 28: ... It is unclear what the outcome of the review process might be, and critics warn that the uncertainty it creates could generate complications for businesses. If all three countries fail to commit to an extension, it triggers an annual review process, which would put the USMCA up for debate every year until 2036. (Source: Al Jazeera) |
CBP Issues Guidance on June 29, 2026, CAPE Expansion June 26: ... CBP said the new phase (CAPE Phase 2) will accept only entries flagged for reconciliation when the subsequent reconciliation entry has not yet been filed with Customs. In contrast, entries flagged for reconciliation with a reconciliation entry already on file will be handled in a future CAPE phase and will not be included in the June 29 (CAPE Phase 2) rollout. (Source: JD Supra) |
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U.S. Customs Seizes Thousands of Counterfeit World Cup Items
June 26: U.S. Customs and Border Protection officers in Cincinnati seized 68 shipments of counterfeit FIFA World Cup 2026™ merchandise during “Operation Protect the Pitch” from June 1 to June 5. The operation intercepted 2,589 items, which would have an estimated manufacturer’s suggested retail price of $266,566 if genuine. (Source: WHIOTV 7) |
Senate Finance Committee Hears from ITC Nominees June 25: The United States Senate Committee on Finance today held a hearing to consider the nominations of five individuals to be Commissioners of the International Trade Commission (ITC). Two of the nominees—Peter-Anthony Pappas (R) and David Foley (R)—have played key roles in IP policy on the Hill over the last several years. (Source: IP WatchDog) |
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As we celebrate the United States' Semiquincentennial this week, a very special thank you to every member who has so far contributed impactful founder and iconic product stories for the #250YearsofFashion archival platform launched in June. Contributors include: Bureau Veritas, Columbia Sportswear, Fruit of the Loom, Gap Inc., G-III Apparel Group, Ltd., Gildan: Hanes, Jockey International, Inc, Kayser-Roth Corporation's HUE and No Nonsense, L.L.Bean, Levi Strauss & Co., New Balance Athletics, Perry Ellis International, Inc., Ralph Lauren, Schott Bros., Inc., Under Armour, and Worldwide Responsible Accredited Production (WRAP). |
Next week in Denver: Next week, AAFA will host its sold-out Traceability & Sustainability Conference, bringing together compliance, supply chain, and corporate social responsibility professionals to explore the industry’s rapidly increasing need for transparency and sustainability across the global supply chain. A special thank you to our sponsors and our fantastic lineup of speakers. The conference will feature keynote speaker Stuart Pond, Chief Supply Chain Officer at VF Corporation. Attendees can also expect sessions on the evolving EU regulatory landscape, extended producer responsibility (EPR), certification standards, decarbonization, responsible sourcing practices, circularity, and more. |
Recent safety and environmental comments: Last week, AAFA facilitated a collaborative discussion among members on California’s Packaging EPR program (SB 54) with a focus on source reduction planning obligations in the state. Separately, in advance of the Consumer Product Safety Commission’s (CPSC) eFiling deadline on July 8, AAFA hosted a member-only briefing to prepare. On June 29, AAFA submitted comments to the Massachusetts House and Senate Committees on Ways and Means regarding a pending ban on PFAS, calling for a commonsense definition of intentionally added PFAS and an exemption from regulation for PPE and for recycled content. Members can stay informed of all related updates with AAFA's Environmental Committee and Product Safety Committee and can contact Conor O’Brien or Chelsea Murtha with any questions. On Wednesday, July 15, AAFA will host a public briefing on its new Global Industry Glossary of Traceability Terms. All industry stakeholders are encouraged to attend. This session will provide an overview of the background and development of the glossary, its key goals, and a preview of its contents. Attendees will also learn about next steps and how the glossary will support greater alignment and clarity across traceability efforts in the industry. For questions, please reach out to Nate Herman. |
AAFA's Beth Hughes and AAFA's summer interns advocating for USMCA on Capitol Hill! |
Section 301 comments and testimony: This week, AAFA will be filing comments in response to the U.S. Office of the Trade Representative (USTR) Federal Register notices regarding proposed Section 301 tariffs. Next Monday, July 6, AAFA's Beth Hughes plans to testify as part of the Section 301 investigation on Brazil. In the meantime, members are encouraged to get involved in AAFA's Forced Labor Working Group, Social Responsibility Committee, Trade and Customs Committee, and our next member-only tariff call on Monday, July 27 for detailed updates and opportunities to advocate for the industry. Talk to Beth Hughes, Nate Herman, or Maureen Storch to get involved. |
Notorious Markets List nominations are underway: Each August, the Office of the United States Trade Representative (USTR) opens the comment period for the Notorious Markets List (NML), seeking input on markets that facilitate trademark counterfeiting or copyright piracy. AAFA is now collecting member input on platforms to nominate for inclusion in AAFA’s submission by August 1. See here for AAFA's NML submission from last year. To provide feedback, please connect with Jennifer Hanks. AAFA is urging congressional support of H.R. 4930, a key anti-counterfeiting customs enforcement measure. To further amplify the bill, we ask for your support by sending a form letter to your members of Congress using the template that is ready for activation in the Legislative Action Center. |
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Visit our events calendar for all AAFA webinars, scheduled events, and member/committee calls. |
| Plan your sponsorships early for 2027 and contact Megan Balkovic to discuss your preferred events and programs for next year. |
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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. |
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