TL;DR
US apparel and footwear imports are weakening, but the bigger issue isnot volume alone. Apparel supply chains are now dealing with softermid-market demand, higher raw-material and transport costs, tariff uncertainty, sourcing shifts away from China, and added routing and security risk at the same time. For fashion importers, this is becoming less of a buying problem and more of a planning problem. The companies likely to navigate this best will be the ones that connect sourcing, logistics, inventory, tariff exposure, and cargo securityearlier — before one issue starts creating pressure somewhere else.
US apparel and footwear imports fell 7.2% year over year in the first two months of 2026, following a 2.4% decline in 2025. Over the past five years, growth has been nearly flat, with a compound annualrate of just 0.1%. At the same time, consumer demand has become more uneven. Premium brands are holding up relatively well, while mid-market and price-sensitive segments are under more pressure.
What makes this more difficult is that apparel businesses cannot respond to all customers in the same way anymore. Demand is becoming more fragmented, which makes forecasting harder, replenishment more difficult to time, and inventory decisions more sensitive.
A product line that is still selling well at full price may need acompletely different sourcing and inventory strategy than a moreprice-sensitive category that could face markdown pressure later inthe season.
Many apparel companies are already managing higher tariff costs, higher transportation costs, and rising petroleum-linked textile input costs such as polyester, nylon, and spandex. At the same time, inventory buffers remain relatively short, with many manufacturers holding only six to eight weeks of stock.
That leaves less room for error.
If raw-material costs rise, bunker fuel increases, or tariffchanges happen close together, many teams may find themselves reacting later than they would like. Orders may already be placed. Production may already be underway. Freight may already be booked.
The risk is that small cost increases start compounding across the supply chain.
Many businesses can handle higher costs if they have enough visibility and time to react. The harder problem is when costs appearat different stages of the supply chain.
In apparel, raw-material costs can rise during production. Freight costs can increase while cargo is moving. Tariff exposure can shift while goods are still in planning. Then, by the time products reachthe market, brands may face more discounting pressure than expected.
What looks manageable in one part of the business can quickly become a bigger issue elsewhere.
A shipment may still arrive on time, but the original margin behind it may already be under pressure before the goods even reach the shelf.
The sourcing mix for US apparel imports is continuing to shift. China’s share fell to 34.1% in 2025 from 41.7% in 2024, while Vietnam, Bangladesh, Indonesia, and Cambodia all gained share. Those sourcing changes are also changing US routing patterns, with inbound clothing shipments into New York and New Jersey increasing while Los Angeles-Long Beach and the Northwest Seaport Alliance saw lower volumes.
Many importers have spent the last few years reducing their dependence on China, but diversification alone does not automatically create stability.
Trade risk is becoming more fluid. If tariff pressure expands into Southeast Asia, some of the sourcing strategies that look sensibletoday may become harder to maintain tomorrow. That does not mean companies should stop diversifying. It means they should test whether their next sourcing mix still works if trade conditions become less predictable again.
When sourcing changes, routing changes too.
That affects more than just which port cargo moves through. It can affect transit times, drayage planning, distribution-center balancing, inland transport costs, and where inventory should sit.
For apparel businesses, timing matters because product launches, seasonal collections, promotions, and size or color assortments areall time-sensitive. A routing change that looks cost-effective onpaper can still create downstream pressure if it adds inland complexity or weakens delivery timing.
That is why routing decisions are becoming more strategic, not just operational.
Many apparel companies are also watching the upcoming USMCA reviewas they assess nearshoring options in Mexico and North America more broadly. Changes to rules of origin or regional trade requirement scould reshape how attractive nearshoring looks in the next few years.
Nearshoring can still make sense. It may offer shorter lead times, less ocean exposure, and more flexibility. But it should be evaluatedin the same way as offshore sourcing decisions: not only on laborcost or transit speed, but also on trade stability, transport design,and long-term predictability.
Cargo theft and counterfeit risk remain ongoing concerns for apparel supply chains. Recent enforcement activity in Southern California recovered more than $7 million in stolen cargo, including apparel and footwear. At the same time, counterfeit markets continue to undercut legitimate brands.
These issues are often treated separately from sourcing andfreight decisions, but they should not be.
For apparel businesses, security loss is also a margin issue, aservice issue, and in many cases a brand issue. The more seasonal, high-value, or resale-friendly the product is, the more important cargo protection becomes.
Different product lines face different demand conditions and markdown risk. One blended landed-cost assumption across the businessmay no longer be enough.
A sourcing strategy that only works under today’s tariff conditions may not be resilient enough for the next round of policy changes.
New sourcing origins should trigger a fresh look at ports, inland transport, and safety-stock placement.
Merchandising, sourcing, logistics, and finance all affect one another. The faster those teams share information, the easier it becomes to respond before pressure builds.
High-risk lanes, handoff points, and branded cargo flows deserve more attention when cargo theft risk is elevated.
The pressure on US clothing imports is not simply about fewer containers moving.
It reflects a broader challenge: demand is becoming more uneven, costs are becoming more volatile, sourcing patterns are changing, and trade policy is becoming less predictable.
The companies that are likely to navigate this best will be the ones that connect sourcing, logistics, inventory, tariff planning, and risk management earlier — before one issue starts creating pressure somewhere else.
Source:https://www.joc.com/article/rising-costs-uneven-demand-crimping-us-clothing-imports-6205476
