Cost Efficiency Has Limited Influence Over Apparel Sourcing in 2026

Just Style | December 17, 2025

Industry experts, including SPESA’s Michael McDonald, offer insights and predictions into 2026 sourcing strategies. Michael shares: “After years of trying to diversify [sourcing] away from China… 2026 will remain defined by reactive planning, diversification, and resilience rather than major strategic shifts.” Sheng Lu, professor and graduate director of fashion and apparel studies at the University of Delaware, supports this cautious outlook, pointing to weak consumer demand and inflationary pressure as factors that will continue to constrain sourcing decisions, making efficiency and flexibility essential rather than aspirational.
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VF Corporation Cuts Nearly 90 Jobs at UK and Ireland Headquarters Amid Falling Sales

Apparel Resources | December 17, 2025

According to the company, sales growth remains its primary objective and is expected to be driven by continued investment in people, alongside product innovation supported by significant spending on design and development by its brand principals. It further stated that sales growth would be strengthened by plans to invest in additional owned or franchised operations, which are expected to support performance through traditional distribution channels. Increased investment is also being directed towards training and development, with a focus on enhancing customer-facing activities.​​

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Circulose Signs Bestseller, Reformation, John Lewis and more

Vogue | December 16, 2025

Recycled textile manufacturer Circulose has announced a new wave of partnerships with major global fashion brands as it advances efforts to bring its next-generation material to market at scale. The latest partners include Danish fashion group Bestseller, UK retailer John Lewis, C&A, Filippa K, Reformation, Faherty, Bobo Choses, and Zero.

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Industry analysts have interpreted the expanding network of partnerships as a sign of renewed confidence in circular textile solutions amid broader sustainability challenges in the fashion sector. By aligning with established brands, Circulose aims to scale the adoption of recycled materials beyond pilot projects and into mainstream production.

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Gap Expects Tariff Mitigation to Start Paying Off Next Year

Supply Chain Dive | December 15, 2025

Gap Inc. expects to begin reaping “meaningful benefits” from its tariff mitigation efforts starting in Q2 of its next fiscal year, according to its most recent earnings call. The majority of the improvements will result from sourcing and production adjustments as well as targeted price hikes, CFO Katrina O’Connell said on the call, which followed the release of the company’s fiscal Q3 results last month. “The back half of 2026 should turn to a tailwind as our actions build, and we lap most of this year’s tariff impact,” O’Connell said, while noting the company anticipates effects from the duties to remain stable the next two quarters.​

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U.S. to Levy Tariff on Nicaraguan Imports Not Originating Under CAFTA-DR

Fibre2Fashion | December 12, 2025

The United States will impose a phased-in tariff on some Nicaraguan goods in response to labor and human rights concerns, the Office of the U.S. Trade Representative (USTR) said last week. According to the USTR, the tariff will be phased in over two years, starting at 10% on Jan. 1, 2027, and rising to 15% on Jan. 1, 2028. ​

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AAFA’s Steve Lamar on the decision: "We support the USTR’s decision in choosing not to impose additional tariffs on CAFTA-DR qualifying goods as part of the section 301 investigation. This approach allows the U.S. to hold trading partners accountable to address unfair practices that harm U.S. workers and businesses, while still safeguarding free trade agreements that are essential to our economy. CAFTA- DR directly supports tens of thousands of American jobs in our industry, with Nicaragua playing a major role in the production of textiles and apparel.”

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Mexico Approves 50% Tariffs on Many Chinese Imports

New York Times | December 11, 2025

The proposal will raise or impose new duties of up to 50% from 2026 on certain goods such as auto parts, textiles, clothing, plastics and steel from countries without trade deals with Mexico, including China, India, South Korea, Thailand, and Indonesia. The majority of products will see tariffs of up to 35%.

China is the second largest exporter to Mexico after the United States, selling $130 billion in goods to Mexico last year. (The United States sold $334 billion to Mexico last year.)

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U.S. House Committee Approves Africa Trade Bill, No Mention of South Africa Exclusion For Now

Reuters | December 11, 2025

“This renewal will be a major win for American workers, our partners in Sub-Saharan Africa and Haiti, and for U.S. competitiveness,” said Beth Hughes, AAFA’s Vice President of Trade and Customs Policy. “These programs safeguard and support 3.6 million American workers while sustaining jobs abroad and opening markets for U.S. cotton and textile exports. Restoring them is urgent, cost-effective, and bipartisan — exactly the kind of practical leadership our supply chains need.”

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