In the 1980s, about 70% of American clothing was made in the United States.
But a major shift away from manufacturing in the USA occurred in the 1980s and 1990s. These shifts were driven by trade liberalization, low labor costs in countries like China and Bangladesh and the early stages of fast fashion. Years passed, and as the demand for more fashion produced quicker and cheaper continued to be emphasized by consumers, today only 2 to 3% of American clothing is made in the United States.
When we talk about American clothing, we are referring to American brands such as Ralph Lauren, Levi’s and Victoria’s Secret. Brands that in one way or another are a staple of American culture designed in America and consumed largely by Americans. These brands have woven the American lifestyle. Ralph Lauren has a rich history of dressing American politicians, everyone from Hillary Clinton, and Lauren Bush, to the Bidens and Kamala Harris. Levi’s 501 jeans have been worn by celebrities throughout history that include Pamela Anderson, Marilyn Monroe, Cindy Crawford, Justin Timberlake, and even Princess Diana. And Victoria’s Secret defined the standards of beauty in the United States from the 1990s to the 2010s becoming a platform that uplifted and celebrated fashion models that became celebrities because they enchanted with their charisma and the aspirational life they portrayed: Adriana Lima, Heidi Klum, Cindy Crawford, Alessandra Ambrossio to name a few.
These brands are deeply rooted in American culture, but as the fast fashioning of production accelerated the rhythm in which collections are presented and new products are introduced, more and more products were being sent to manufacture overseas. So for decades, the sustainable movement has urged for things to slow down. Clothes coming from Asia to America means tons and tons of textiles being carried in boats for trips that can last from 15 to 30 days —which translates into 3 to 5.5 million gallons of fuel. These boat trips happen regularly, because the stores are updated regularly with new products, collections and restocks.
Additionally, there is the human rights side of fashion. In 2013, the Rana Plaza collapse brought worldwide attention to a factory in Bangladesh with extremely unsafe conditions that resulted in the death of 1134 people. The building housed five garment factories and had been reported as structurally damaged by the workers who saw large cracks in the ceilings and across the walls.
Fast forward to late 2024 and early 2025. Far-right governments and nationalism are pushing for proudly made goods that are made in their country of origin. These nationalist ideas suggest that the goods made in the USA are in a way ‘superior’ and must be worn as a badge of honor, something Made in the USA is proudly made in the USA.
Let's talk about tariffs
The implementation of new tariff policies has sent significant ripples through various sectors of the American economy. The fashion industry—a complex and fascinating ecosystem of designers, manufacturers, retailers, and consumers—finds itself particularly vulnerable to these trade policy shifts.
Specifically, tariffs on everything that makes a piece of clothing (textiles, threads, buttons, zippers) and other components have forced fashion businesses to make difficult decisions regarding their sourcing strategies. Who should pay for the cost of the tariffs, the company or the customer? Will there even be a business to supply with the high costs of tariffs?
Is it even worth importing fashion goods to the USA where consumers are down to spend in fast fashion but tariffs are so high that the business model collapses?
In the short term, global fashion industry goods are expected to increase anywhere from 10 to 20% according to recent studies. Fashion retailers depend on rapid production cycles and low-cost imports have been especially affected. The place of manufacturing cannot change overnight because it involves transferring an entire operation and dismantling entire teams who have connected design teams with sample makers and factories to make out fashion goods for the last decades.
There are no winners in a tariff war and going against the world will only result in self-isolation,” said Mr. Xi, who was meeting with the prime minister of Spain, Pedro Sánchez.
Now What?
Fashion businesses are looking at alternatives that include:
Nearshoring: Some fashion companies are accelerating shifts to manufacturing facilities in Mexico and Central America to avoid Asian-focused tariffs while maintaining reasonable shipping times. The tariffs imposed on these countries are significantly lower and transportation will be quicker and potentially less expensive than shipping overseas.
Domestic Manufacturing Revival: There has been renewed interest in US-based production, particularly for premium products where the "Made in USA" label can help justify higher price points to consumers. The advantage of the fashion industry in comparison with other industries like toys, or automobiles, is that there already are several clothing factories in the United States. Los Angeles and New York are cities with strong clothing manufacturing that fulfill orders for many American companies grown around the values of Made in USA. (This label has become so popular in recent years, that several brands are misleading their customers with a big stamp that says Designed in the USA and a small seal that says Made in China).
Inventory Management: Many retailers have adjusted their buying patterns, placing smaller initial orders and closely monitoring sales performance before committing to larger production runs.
Material Substitution: Manufacturers can experiment with alternative materials less affected by tariffs, though this often requires significant product development investment.
The ‘Good’ Side
The reasoning behind these tariffs is to bring manufacturing back to the United States. The tariffs are not a response to the 3 to 5.5 million gallons of fuel released to Sealife in one trip from China to USA, or a response to the 1134 people who died in Bangladesh and paid the true cost of fashion. The tariffs are a result of this nationalist idea that the far-right triggers, pushing for locally made goods that are proudly made in their own country. It’s almost as if nationalism is pushing for sustainable fashion without saying any of that woke language.
One of the primary reasons why ultra-fast fashion models, such as Shein and Temu have continued to escalate in popularity over the last years is because of their very accessible prices. The increase in the prices in ultra-fast fashion is a measure that will push consumers to buy less of these ultra-fast fashion goods and reevaluate consumer habits. And when we talk about sustainable fashion, the conclusion and common denominator of many of these analyses is that the most important aspect to tackle is consumer habits and the reduction of overconsumption.
The ‘nationalist’ mandate for these tariffs was not intended to push for a sustainable fashion lifestyle —historically, the far right has undermined the impacts that climate change has on our health and quality of life. But we can still highlight that these mandates are inevitably pushing American consumers to pivot away from overconsumption and reduce the purchase of ultra fast fashion goods.
The United States receives about 4 million packages from China and Hong Kong every single day. These packages are orders from providers like Shein, Temu, or Amazon Haul. The tariffs will inevitably bring these numbers down, reducing transit pollution and textile waste.
The Bad Side
Many American and international retailers have inflexible Asian supply chains. They were built around the system of manufacturing overseas and distributing clothes overseas. This new operation system has pushed these retailers to a void of uncertainty where they are only left with the inventory they have at their warehouse, bills to pay, and a stressful and uncertain future that doesn't look promising without any kind of support to help them transition away from overseas manufacturing.
Many retailers are already struggling with thin profit margins. At the end of the day, everyone from the designer at the cost of production stage to the consumer at the store, is pushing for the lowest price to pay. While some retailers are trying to absorb the cost of the tariffs, it is almost impossible for others, as it will make their business not profitable.
The workforce is another key pillar of the fashion industry that is at stake here. The creation of more factories and manufacturers is needed to expand the workforce to the levels that are needed to supply our demand for fashion goods. In the meantime, retailers are closing, leaving another sector of the fashion industry in uncertainty.
Conclusion
The transition to locally made goods in fashion is needed to address the climate crisis that we face at historically higher levels year after year.
Although tariffs are pushing for locally made goods in the USA, they are not leaving American fashion businesses in a hopeful short-term future where their business can thrive.
As fashion companies navigate these challenges, their ability to remain nimble while maintaining brand identity and consumer loyalty will likely determine which businesses emerge stronger from this period of trade policy upheaval. For consumers, the new reality may mean adjusting to higher prices for everyday apparel items or shifting purchasing patterns to thrift stores, flea markets, and local businesses to accommodate changing market conditions.
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