Fashion Tariffs 101

This will be a busy year of trade rhetoric, and we hope it is a busy year on smart trade policy. Read on for a bit of context on what that means in relation to clothes, shoes, accessories, travel goods, and how strategically applied tariffs can make a difference.

Tariffs on U.S. Importers | Tariffs Are Taxes

It’s no secret that much of the clothing and footwear you purchase is imported. We are a highly globalized industry, and your most trusted brands have sophisticated and responsible supply chains across the world. What is surprising is that American brands and their consumers are footing a tariff burden that is outdated, regressive, and even misogynistic!

Did You Know?  

  • The U.S. apparel, footwear, and accessories industry directly employs 3.5 million American workers in good paying jobs in design, R&D, compliance, marketing, and retail in every corner of the United States.
  • The average effective tariff rate on both footwear and apparel is over five times higher than on all other U.S. imports.  
  • Fashion’s share of total U.S. imports is about five percent while fashion’s share of total duties is more than 25 percent.  
  • Many are surprised to learn that there is STILL an extra burden borne by woman due to a “pink tariff” - U.S. tariff rates on women's clothes and shoes are about three percent higher on average than tariffs on men's clothes and shoes.   
  • The disparity means an extra cost of about $2 billion+ for females (or more precisely, buyers of women's clothes and shoes) as of 2018.

Although fashion’s supply chains have evolved considerably over the past decade alone, the tariffs governing that supply chain are still anchored in the policies that led to the Great Depression. 

Fashion tariffs are also regressive, not only by disproportionately taxing the disposable income of lower income American more than their richer counterparts, but also by charging higher tariff rates on product that they buy in greater quantities than wealthier Americans. For any conversation regarding new tariffs, it makes sense to address the longstanding gender and income discrimination.

A woman pulling a pink wallet out of a teal purse with the text "Those purchasing woman's clothing & shoes are facing a collective tariff disparity of $2B+ since 2018 alone"

 

Tariffs By State:

From Arizona to Texas to Pennsylvania, tariff rate increases — like those in 2018-2019 due to Section 301 tariffs on China, and coming soon due to recent tariff announcements and ‘reciprocal tariff reviews’ — raise prices for consumers of many everyday items. Dig into our analysis of 2024 data, state by state, with these one-pagers.

How Can Tariffs Be Strategic? 


Tariffs, thoughtfully applied for strategic ends, can play an important role in advancing U.S. economic and security policies. But across the board tariffs, particularly on fashion articles and materials, and other items that are not made at scale in the United States, only fuel inflation. We look forward to a renewed and invigorated conversation on smart tariff and trade policy, not only to make sure we can fix a centuries old problem, but also to ensure we have the tools to keep us competitive, fashionably so, well into the coming decades.  

With the new Administration’s claims that it will implement new tariffs – on U.S. imports from China, Mexico, and across the globe – we have ample concerns about how this could play out. Read on with recent comments, testimony, and follow along with #TariffsAreTaxes.

Recent Comments & Testimony

Mar. 25, 2025

AAFA Study Finds USTR Shipbuilding Proposal Hurts America

AAFA-funded study finds USTR Section 301 shipbuilding proposal hurts America.

Mar. 24, 2025

AAFA Opposes USTR Section 301 Shipbuilding Proposal

AAFA written comments opposing USTR Section 301 shipbuilding proposal.

Mar. 11, 2025

AAFA Submits Comments to USTR on Unfair Trade Practices

AAFA submitted comments to the U.S. Trade Representative citing unfair trade practices by our trading partners while highlighting the concern of future tariff action on key sourcing countries.

Mar. 03, 2025

Sweeping Tariffs Undermine Economic Stability for American Companies and Consumers

AAFA responds to 25 percent additional tariffs on virtually all U.S. imports from Canada and Mexico and another 10 percent on all U.S. imports from China.

Follow with #TariffsHurt #TariffsAreTaxes
Contact us: tariffs@aafaglobal.org | media@aafaglobal.org