US apparel prices are on the rise. With rising cost of raw materials and inputs that go into fibers and fabrics to the cost of labor and logistics, are leading to price hikes for customers. Besides, there’s the threat and likelihood of a 10 per cent tariffs on apparel imports from China and the potential for higher rates down the road. If this happens, American companies will be forced to raise prices. Already, footwear and apparel are some of the most highly taxed products in the US, reaching as high as 37.5 per cent. The impact could challenge consumer spending in an already tough retail market.

Retail apparel prices increased 1.1 per cent in June, the first gain in four months. Though some cost pressures from the low raw cotton prices have eased in the supply chain, there are other areas where costs are causing prices to climb. These are labor, chemicals and transportation. The polyester business was dampened by the continuation of high levels of yarn imports, which play significant pressure on selling prices. The global fiber market remains under strong pressure due to the increasing fiber capacities in the Asian market, in particular in the standard fiber segment.