Retailers in the US are struggling due to the trade war with China. The US has proposed a new list of tariffs that targets imports from China like performance wear, windbreakers, headbands, gloves, bathing suits and ski suits. Tariffs on Chinese imports could accelerate pressure on these companies’ profit margins to the point where major store closures become a real possibility.

Many retailers — and specifically those that sell clothing — have already been struggling, with the threat of tariffs hanging over them. Companies like Victoria’s Secret and Gap have been shutting stores, struggling to find ways to differentiate themselves from popular fast-fashion brands and up-start brands. Store closures announced by retailers in the US this year have already surpassed those announced in 2018. Imposing tariffs on US companies’ imports from China – goods that support US manufacturing and provide consumers with affordable products – are seen as jeopardizing American jobs and increasing costs for consumers.

In 2017, China accounted for about 41 per cent of all apparel, 72 per cent of all footwear and 84 per cent of all travel goods imported into the US. It is estimated another round of tariffs could cost an average family of four $500 a year, not accounting for other price increases suppliers might implement, beyond what the retailers are forced to do.

Sri Sowbarnika Tex, based in Tirupur, makes clothing for pets in the US. The company venture into this space in a small way and mainly to keep workers engaged, when knitwear garment exports started to slide. A buyer in the US was impressed with the samples and since then there has been no looking back. The unit has in the last year alone shipped 2.5 lakh pieces. Brightly colored pieces are in demand.

Americans used to source pet clothing from China but now with sanctions in place have started looking to India. Barely a handful of Indian exporters are engaged in pet clothing. Exporters in North India have been supplying accessories such as pillows and bedspread for pets. When it comes to clothing, the stitching and other processes are similar. But testing norms are stringent. Margins are pretty low and the space is highly competitive.

About six lakh employees work for 6,500 knitwear and apparel units in Tirupur, helping to earn Rs 50,000 crores in exports a year. Exports of Tirupur in the last financial year have gone down by 5.6 per cent from the previous year. Among the reasons are the changes in duty and tax structure such as GST.

Bangladesh’s garments shipments to non-traditional, mostly major markets grew by 29.62 per cent year-on-year to $3.15 billion in the first nine months (July–march) of FY2018-19 compared to $ 2.43 billion during the same period last year. This growth has been possible because of an incentive package and access to duty-free markets. The government had announced a cash incentive of 5 per cent in 2010 for exports to non-traditional markets. Another reason is that most of the non-traditional markets have offered duty-free access to Bangladeshi apparel exporters.

In the July–March period of FY2018–19, Bangladesh earned $ 386.47 million from its exports to China, showing a growth of 43.68 per cent. China, the world’s largest apparel supplier, has started importing products from Bangladesh after the Chinese government allowed duty-free access to over 5,000 Bangladeshi products. From its exports to India, Bangladesh earned $204.13 million during the same period of FY 2017-18.

Google will help fashion brands become sustainable. This includes measuring the environmental impact associated with the production of raw materials, including water and pesticide use in the production of cotton, and deforestation in making viscose. The company is building a tool on Google Cloud that uses machine learning to give brands a more comprehensive view into their supply chain, particularly at the level of raw material production. The tool will include data sources that allow companies to better measure the environmental impact of their raw materials, including air pollution, greenhouse gas emissions, landuse and water scarcity. Based on the effectiveness of the pilot, Google will consider expansion into a wider variety of key textiles down the line.

While a growing number of brands are taking steps to reduce plastic waste in their packaging and launch take back schemes to keep old clothing, shoes and accessories out of landfill, few have been able to make a difference at the source. The fashion industry is considered to be one of the most polluting industries on the planet, accounting for 20 per cent of waste water and ten per cent of carbon emissions globally. Much of this impact occurs at the raw material stage in the production process, where brands have little to no visibility.

Lectra has been awarded the Texprocess Innovation Award 2019 for its latest ground-breaking offer, Fashion On Demand by Lectra. Fashion On Demand by Lectra automates the entire personalization process, from order reception and product development to the final cutting stages. Resulting from a four-year research-and-development process, the digital solution for on-demand production was developed based on Industry 4.0 principles. It allows companies to produce personalized clothing at the same speed as ready-to-wear and avoids overstocking by producing in precise quantities.

Fashion On Demand by Lectra is available in the form of two packages, one dedicated to made to measure, with pattern adjustments, and the other to customization, with product characteristic alterations. This turnkey solution automates on-demand production right from order reception to production development stages and the cutting room. Companies can define their desired product personalization criteria for each item depending on the package, and launch production processes right from the get-go, without interfering with their standard workflows. This innovative cloud-based platform solution ensures efficient made-to-measure and customization production processes and facilitates nearshoring for companies that offer individualized products.

Since 2011, the Texprocess Innovation Award has been honoring remarkable achievements and new developments in the Texprocess product range under two categories: new technology and new process. Winners are selected based on criteria such as degree of innovation, choice of materials and environmental sustainability.

The Home Fashion Products Association (HFPA) recently alerted its members about the new list of Chinese imports proposed for a 25 per cent tariff. The US Trade Representative’s (USTR) notice is expected to be published in the Federal Register in the next several days.

According to the USTR text, HTS provisions not subject to a specific importer or HTS exclusion will get a 25 per cent duty rate, including HFPA and ADFC [American Down and Feather Council] members’ products.

USTR will also hold public hearings on the tariffs, which the Trump administration proposed in retaliation against subsidies on large civil aircraft by the European Union (EU) and certain EU member states. If enacted, the tariffs would fall on goods imported into the US from all EU member countries. Representatives of the National Retail Federation, Retail Industry Leaders Association and the American Apparel & Footwear Association are also on the hearing panel list. All three groups oppose the tariffs.

The value of Iran’s textile exports rose six per cent during the year. The weight of the country’s textile exports rose 26 per cent. Iranian textile manufacturers’ imports of textile raw materials fell 32 per cent in terms of value and 35 per cent in terms of weight.

The value of non-oil trade during the first month of this Iranian calendar year fell 13.5 per cent compared to that of the same month of the past year. Iran’s exports of non-oil commodities during the first month grew 7.66 per cent in weight but fell 18.25 per cent in value compared to the first month of the previous year. Monthly non-oil imports were up 7.75 per cent in weight but down 7.65 per cent in value year on year. The value of Iran’s trade with neighboring countries in the past Iranian calendar year was about 41 per cent of the country’s total non-oil trade in the mentioned time span.

Iran shares a border with 15 countries, the United Arab Emirates, Iraq, Turkey, Afghanistan, Pakistan, Russia, Oman, Azerbaijan, Turkmenistan, Kuwait, Qatar, Kazakhstan, Armenia, Bahrain, and Saudi Arabia. The country plans to launch 15 mega export projects to identify more target markets.

KPR Mill has opened a garment unit in Ethiopia. The complete set-up of the garment unit took about two months. Extensive training of the workforce took place in both Ethiopia and India. At full capacity, the company will employ 1,500 machine workers who will produce 50,000 garment pieces a day for the world market. So far, employment has been created for 700 people and export shipments have commenced to Europe and the United States.

KPR Mills is an integrated textile manufacturing company from India. This is its first overseas garment unit. The opening of the factory is the result of a collaborative partnership with the International Trade Centre’s (ITC) Supporting Indian Trade and investment for Africa program (SITA), which works to build trade and investment linkages between India and East Africa. ITC’s SITA program aims at improving the competitiveness of selected value chains, including textiles and apparel, in five East African countries – Ethiopia, Kenya, Rwanda, Uganda and the United Republic of Tanzania – through the provision of partnerships with institutions and businesses from India. KPR Export is a showcase example of Ethiopia’s attractiveness and investment potential and a demonstration of the successful effort by ITC’s SITA program in strengthening business linkages across the Indian Ocean.

Indorama Ventures (IVL), a global chemical producer, has launched a new 100-percent rPET (recycled PET) brand DEJA™ as a part of its continuous commitment to deliver responsible and sustainable growth. IVL’s new 100-percent rPET fiber brand DEJA is available in various forms such as recycled flake, pellet, fiber and filament for use in multiple applications. Its products are derived by recycling 140 kilo tonne of plastic bottles yearly and transforming them into extra-ordinary, innovative, product ingredients. The DEJA brand enables forward-thinking companies to make a decision based on performance and innovative future-proofed materials.

Headquartered in Bangkok, Thailand, IVL has operating sites in 31 countries on five continents and a global manufacturing footprint across Africa, Asia, Europe and North America.The company has been at the forefront of the process in developing the technology to convert rPET bottles into highly usable products for over 40 years. Its heritage in pioneering recycling technology for global applications has ensured consistent delivery and innovation in changing and challenging environments.

IVL continues to build durable competitive advantages through its diversified portfolio, supported by a responsible approach to sustainable business, people and the environment; creating value for society and for customers.

The American Apparel & Footwear Association is severely disappointed by the Trump administration’s decision to propose further tariffs on approximately $300 billion worth of US imports, including clothing, shoes, and other textiles from China. According to AAFA, tariffs are taxes on American consumers that result in higher prices, lower sales, and loss of jobs. While the Administration is in ‘no rush’ to form a deal with China, it is apparently in a hurry to impose new taxes on the American consumer.”

The American Apparel & Footwear Association estimates that a family of four will be charged an additional $500 per year to cover these tariffs on clothing, shoes, travel goods, and related items. The Tariffs Hurt the Heartland campaign estimates that the average family will be hit with an additional $2,300 per year to cover all of the Administration’s tariffs.