The impact of Trump’s reciprocal tariffs on global trade, producers, and consumers in the garment industry is a critical issue that affects various stakeholders worldwide. These tariffs, implemented as part of a strategy to address trade imbalances, have sparked discussions and concerns within the industry.

The World Trade Organization (WTO) and the International Labour Organization (ILO) play pivotal roles in overseeing trade regulations and labor standards, respectively. The imposition of tariffs can lead to disruptions in supply chains, affecting producers’ sourcing decisions and operational costs.

For consumers, these tariffs may result in price fluctuations and availability issues for garments, impacting their purchasing power and choices. Developing countries, especially Least Developed Countries (LDCs), often heavily rely on garment exports, making them particularly vulnerable to changes in trade policies.

It is essential for stakeholders to closely monitor and adapt to these tariff dynamics to navigate the evolving landscape of global trade. Understanding the implications on different sectors and regions is key to mitigating risks and maximising opportunities in the garment industry.

For more insights on the impact of Trump’s reciprocal tariffs on global trade and the garment industry, you can visit the provided link for further analysis Remember the garment sector in the world economy employs over 70 million people where over 75 per cent are women; is some 1-2 per cent of global GDP and in total is has about $1.5 trillion transactions.  

T-shirt Market 

With Trump’s reciprocal tariff negotiations all but finished with most countries around the world except China, what is going to be the impact on global trade, consumers and producers?  

Well it would be useful to start with the garment industry and the basic t-shirt market. Above we have the prices for a consignment of 100 T-shirts to be sent to the US from leading providers around the world including the US, at April 2025 prices.  

Here both Bangladesh and Vietnam have been hit with a 20 per cent tariff and Pakistan with 19 per cent.  In any of these cases, it still makes the getting 100 T-shirts from Bangladesh,Vietnam and Pakistan cheaper than making them in the US. So it does not seem to transferring jobs to US manufacturing at all.  It appears the producers in those countries could easily transfer the costs to consumers without been out performed by the US manufacturers. 

If any thing the US consumer will be faced with between 19-20 per cent increase in the price of their t-shirts. This when JP Morgan suggest that tariffs could subtract 1% from GDP and add 1.5% to inflation in the US. Are they ready for this on what would be considered a basic item of clothing in the US? Will it prove the zero-sum game Trump thinks of global trade?! 

So watch this space, other the next few months.