Anushree Jain is the CEO of Titan Global Technologies LLC.
Most people don’t spend much time thinking about where their clothes come from—until prices rise. In 2025, those increases aren’t just about fashion trends or inflation. They’re rooted in a deeper economic shift in the global textile trade. After working with apparel brands and sourcing teams for over a decade, I’ve seen firsthand how international policy and supply chain decisions end up shaping what hangs in our closets and how much we pay for it.
The U.S. Apparel Market: Still Reliant On Imports
The U.S. apparel and wearable textile market is massive, valued at $365.70 billion, with roughly 97% of clothing sold in the U.S. imported. China has long dominated this supply chain (registration required), accounting for over 28% of U.S. apparel imports in recent years. But that’s beginning to shift.
Tariffs On China: Reshaping The Landscape
The 2025 tariffs on Chinese textile and apparel goods are more than a political headline. They’re a real cost burden on everyday basics. Based on trade data from Q1 and Q2 this year, U.S. import prices on Chinese apparel have jumped 14% since the new tariffs went into effect.
For brands and retailers, that means making tough decisions: Absorb the cost, raise prices or rethink where they source.
India: A Rising Force In Apparel Exports
India is quickly becoming a central player in the global apparel trade—not just because of cost competitiveness, but because of capacity, quality and strong U.S. trade ties.
• India is one of the largest textile and apparel exporters, with exports totaling $36.6 billion in 2025. This is projected to reach $65 billion by 2026.
• Of that, nearly $10.8 billion was exported directly to the U.S., and the figure is growing steadily year-over-year.
India continues to face a 10% average tariff on textile exports to the U.S., although some product segments attract duties as high as 26% due to differences in classification and product type. This ongoing shift in global tariff structures is likely to change the competitive equation, especially if India’s trade negotiations with the U.S. lead to a reduction in duties, giving Indian suppliers a natural advantage in today’s cost-sensitive climate. And with initiatives like the Production Linked Incentive (PLI) scheme, India is doubling down on textile capacity, sustainability and high-value manufacturing, especially in cotton and natural fiber-based fabrics.
In my work with sourcing teams and U.S. retailers, I’ve seen a marked increase in vendor inquiries and volume orders shifting toward Indian mills and manufacturers. They’re becoming not just a backup plan but a new standard.
The Consumer Impact: Prices Keep Climbing
Even with diversification, the reality is that transitioning supply chains takes time and costs money. New vendor onboarding, logistics recalibration and quality control mean added overhead. While India and other countries (like Vietnam and Bangladesh) are absorbing some of the demand, they aren’t yet able to match China’s former scale and efficiency.
As a result, clothing prices are expected to rise over the next 12 to 18 months, according to industry analysts. For consumers, the impact will be most visible in mid-market and fast fashion brands, where margins are tighter.
For Investors: A Moment Of Opportunity And Realignment
If you’re looking at the textile market from a financial lens, this is a key inflection point. Apparel brands that are proactive in rebalancing their sourcing, especially toward India and nearshoring markets, are better positioned to weather rising costs. U.S. importers that build long-term supply relationships are setting themselves up for pricing stability, quality control and even environmental, social and governance (ESG) improvements.
Meanwhile, countries like India are seeing a surge in foreign direct investment (FDI) in their textile sector, driven by structural economic reforms and a sharp rise in global demand for sustainable, traceable sourcing. India attracted over $4.56 billion in FDI into textiles between April 2000 and September 2024, with new momentum in recent years thanks to key initiatives.
At the same time, many global brands are actively shifting demand toward low-carbon, transparent and ethical supply chains; one report found that 60% of consumers are willing to pay a small premium for sustainability. For some, India is emerging as a preferred sourcing hub (registration required).
Final Thoughts
The age of ultra-cheap fashion may be winding down. Tariffs and supply chain rebalancing are combining to lift the price floor across the apparel industry. But this isn’t just a cost story—it’s a story of realignment.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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