The apparel fabric industry experienced notable shifts this week, driven by evolving trade policies, sustainability initiatives, and technological advancements.
Trade Dynamics and Labor Challenges
In response to escalating U.S. tariffs—reaching up to 145% on Chinese imports—retailers like Walmart are increasingly sourcing garments from India. India offers relatively lower tariffs (26%) compared to China and Bangladesh. However, the Indian garment industry faces significant hurdles, including labor shortages, limited factory scalability, and higher production costs. Despite government training programs and automation efforts, retaining skilled workers remains a challenge, potentially hindering India's ability to capitalize on its tariff advantages.
Surge in Secondhand Apparel Market
The U.S. secondhand clothing market is experiencing a boom, fueled by increased tariffs on imported apparel and a growing emphasis on sustainability. With the expiration of the de minimis exemption for shipments under $800, prices on imported fast fashion items have risen, making secondhand options more appealing to cost-conscious consumers. Industry leaders like Goodwill and ThredUp anticipate continued growth, with projections estimating the U.S. secondhand market to reach $73 billion by 2028.
UK's Circular Textile Initiatives
The UK is striving to become a global leader in circular textiles, launching initiatives like Project Re:claim—the nation's first commercial-scale post-consumer polyester recycling plant—and the Circular Fashion Innovation Network (CFIN). These efforts aim to build a national textile recycling infrastructure. However, challenges such as limited infrastructure, slow government policy support, and lack of investment hinder progress. Industry stakeholders are advocating for the introduction of an Extended Producer Responsibility (EPR) scheme to mandate textile producers to support recycling initiatives.
India-UK Free Trade Agreement Boosts Fashion Sector
The recently finalized India-UK Free Trade Agreement, signed on May 6, 2025, eliminates import duties for British fashion and beauty brands entering the Indian market. This development is expected to invigorate interest from UK luxury labels in India, especially amid projections that India's affluent consumer base will grow by 129% by 2030. Conversely, Indian designers and exporters foresee expanded presence in the UK, with textile exports already at $1.2 billion. The agreement also supports artisan communities and traditional crafts by enabling clearer trade regulations.
Bangladesh's Textile Recycling Efforts
Bangladesh, the world's second-largest apparel producer, is under pressure to enhance its textile waste recycling capabilities. With approximately 577,000 metric tons of textile waste generated annually, the country currently recycles a minimal portion domestically. Efforts are underway to develop a more robust recycling infrastructure to meet global sustainability standards and retain its position in the international market.
