Apparel Manufacturers NAICS 3152

Jul 29, 2025 - De Minimis Exemption to End

• An expansive bill signed into law by President Trump in July 2025 includes a provision to eliminate the de minimis exemption, heavily used by fast fashion and other e-commerce retailers, according to a report in Supply Chain Drive. The exemption had allowed imports under $800 to enter the US duty and tax free. While the change was slated to go into effect in 2027, the Wall Street Journal said the White House is ending the exemption as early as August 29, 2025. The new bill establishes a civil penalty for anyone trying to use de minimis entry in a way that violates any other provision of US customs law. Earlier this year, Trump had suspended the de minimis exemption for imports from China. The number of shipments entering the US using the exemption in the last four years increased from 637 million to over 1 billion per year.
• Consumer confidence levels, an indicator of discretionary spending, increased in July 2025 month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s levels, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan increased in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The US apparel manufacturers industry is projected to grow at a CAGR of 0.33% between 2025 and 2029, slower than the overall economy's anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods. Lower inflation supports a moderate increase of real disposable income by 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation. The nondurable goods manufacturing sector forecast indicates that the labor force is expected to diminish. However, new technologies could support labor productivity for the industry. Apparel and leather, textiles, paper, and printing production saw substantial losses between February 2020 and December 2024. Some of these segments were already declining before the pandemic.
• The Apparel, Leather and Allied Products industry is one of the nine manufacturing industries reporting growth in June’s Manufacturing ISM Report on Business. The Apparel, Leather & Allied Products industry reported an increase in new orders, production growth, and higher inventories in June. Additional manufacturing industries reported growth during the period including Petroleum & Coal Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Furniture & Related Products; Computer & Electronic Products; Machinery; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components. Industries reporting contraction were Wood Products; Paper Products; Chemical Products; Textile Mills; Transportation Equipment; and Fabricated Metal Products. Overall, economic activity in the manufacturing sector contracted for the fourth consecutive month in June, with the Manufacturing PMI registering 49%.