Apparel Wholesalers NAICS 424350

Jul 31, 2025 - De Minimis Exemption to End in 2027

• An expansive bill signed into law by President Trump in July 2025 includes a provision to eliminate the de minimis exemption in 2027, according to a report in Supply Chain Drive. The exemption had allowed imports under $800 to enter the US duty and tax free. US garment and textile manufacturers supported the elimination of the de minimis exemption, which they said gave an unfair advantage to foreign producers. The new bill establishes a civil penalty ($5,000 for the first violation, up to $10,000 for subsequent violations) for anyone trying to use de minimis entry in a way that violates any other provision of US customs law. A few exemptions will remain for eligible items bought during travel and bona fide gifts from foreign citizens to US residents. Earlier this year, the Trump administration had removed the de minimis exemption for imports from China and Hong Kong.
• According to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates, import cargo at major US container ports is expected to rebound in July 2025 following a drop in the spring, but is forecast to fall again when a tariff delay by the Trump administration ends in August. Ben Hackett, founder of Hackett Associates, said the global supply chain works best in a predictable trade environment and not with erratic policies and geopolitical volatility. He noted, “A flurry of tariff-related announcements from the Trump administration has only served to further increase supply chain uncertainty.” Tracker data showed that US ports handled 1.95 million 20-foot equivalent units (TEU) in May 2025, down 6.4% year over year, and a projected 2.0 million TEU in June 2025, expected to be down 3.7% year over year.

• The US apparel wholesalers industry is projected to grow at a 0.13% CAGR from 2025 to 2029, slower than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. Retail spending could soften with the growth of spending on consumer services. Another factor that may limit consumer spending is higher tariffs on consumer goods. In 2025 and into the forecast period, real disposable income may be supported by continuing nominal wage growth, lower inflation rates, and higher employment levels. Lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if prices rise due to tariff implementation.
• According to a new survey from the National Association of Wholesale-Distributors (NAW), tariffs are driving cost increases and creating operational challenges across the wholesale distribution industry. The survey was done in collaboration with Modern Distribution Management (MDM) Research. About a third of distributors say they face price increases of 25% or higher. According to Eric Hoplin, NAW’s CEO, “Though these increases haven’t hit store shelves yet, it’s an indication of where prices are headed.” About 62% of distributors expect their cost of goods will rise by 10% or more in 2025, while 67% of respondents report a negative impact on their business. Nearly 40% of respondents said more than 20% of their inventory originates in China, and only 17% can shift to domestic or non-impacted suppliers. Operational actions being taken by distributors include slowing inventory replacement (48%), delaying new hiring (44%), cutting capital investments (37%), and reducing discretionary spending (60%).