Apparel Manufacturers NAICS 3152

Mar 25, 2026 - Apparel Imports Hold Steady Despite Tariffs

• Despite new tariffs intended to boost domestic production, US apparel manufacturers saw limited benefit as imports remained resilient in 2025, according to a Fashion Network report. Textile and clothing imports declined just 3.3% to $104 billion, following stabilization in 2024 after a 22% drop in 2023, indicating continued reliance on foreign sourcing. Rather than reshoring, supply chains shifted: imports from China fell 32.3%, while Vietnam increased 12.9% to $18.4 billion, with additional gains from Bangladesh (+11.5%) and Cambodia (+26.4%). This substitution effect underscores ongoing global competition for U.S. producers. Meanwhile, tariff-related uncertainty persists, with $133.5 billion in federal revenue potentially subject to reimbursement to importers. Overall, the data suggests tariffs reshaped sourcing patterns more than they strengthened domestic apparel manufacturing demand.
• Apparel prices were 2.5% higher in February 2026, compared to the previous year, according to the Consumer Price Index by the US Bureau of Labor Statistics (BLS). Prices for the category were up 4.2% from the previous month. Employment by apparel manufacturers fell 8.4% in February 2026 compared to a year ago, according to the BLS. Employment in the industry for the past decade has fallen by 44.5%, lower than the 11.9% growth in overall private employment. Producer inflation for cut and sew apparel manufacturers was up 3.7% in February 2026 compared to a year ago, according to producer price data released by the BLS.

• Sales for the US apparel manufacturers industry are projected to grow at a CAGR of 0.59% between 2025 and 2029, slower than the overall economy's anticipated growth, according to an updated 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 nondurable goods manufacturing industries including apparel manufacturers. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. The forecast noted that a tighter immigration policy could limit the expansion of the labor supply and job growth for nondurable goods manufacturing industries. However, labor productivity could still improve due to new technologies such as AI and 3-D printing as well as adjustments forced by the pandemic.
• The US apparel manufacturing industry faced a difficult February despite broader manufacturing expansion, according to the latest Manufacturing ISM Report on Business. While the Manufacturing PMI registered 52.4%, apparel, leather and allied products was one of only five industries in contraction. Conditions were weak across key demand and output measures: the industry reported declines in new orders, production, inventories, new export orders, and imports. At the same time, apparel manufacturers were among the industries reporting customers’ inventories as too low, which could support future replenishment demand. Industrywide cost pressure intensified, with the Prices Index jumping to 70.5%, while employment across manufacturing remained in contraction at 48.8%. For apparel manufacturers, the report points to continued near-term softness and margin pressure, but with some potential upside if low customer inventories translate into restocking later in the year.