President Donald Trump announced on 3 march he will proceed with the 25% tariffs on all imports from Canada and Mexico as well as place an extra 10% on the existing 10% tariffs on China goods, which takes China tariffs to 20%.
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The two countries were given 30 days to address Trump’s concerns on illegal immigration and drug threats, but the White House said both countries “failed to adequately address the situation”.
Mexico and Canada have announced retaliatory measures and China has said it will impose fresh tariffs on a range of agricultural imports from the US, according to multiple news reports.
AAFA, USFIA and NRF call for alternatives to ‘harmful’ Canada, Mexico, China tariffs
American Apparel & Footwear Association (AAFA) president Steve Lamar stated the escalating tariffs threaten the stability of the consumer-driven economy and the 3.5m jobs supported by the apparel industry.
He is calling for discussions with government officials to establish smart trade policies that benefit both US exports and imports while urging Congress to play its role in managing tariffs and renewing beneficial trade agreements.
The AAFA hopes to engage with US administration officials, including US Trade Representative Ambassador Greer and Commerce Secretary Howard Lutnick on trade policy guardrails that will promote intelligent trade strategies.
“These new tariffs are compounding rapidly. Amid other hints at hitting hard on the EU and other allies as well, each HTS code of tariffs snowballs into a growing – and potentially crushing – burden on American businesses and hardworking American families,” Lamar noted.
The organisation stressed the importance of government actions that support both the export of US goods and the importation of safe, affordable consumer products.
Lamar added: “Both sides of this trade equation support hundreds of millions of American consumers and workers, and the communities in which they live. We also look to the 119th Congress to assert its constitutionally mandated roles on tariffs to ensure these trade policies can achieve their objectives in a clear manner and to reactivate and renew beneficial trade agreements and trade preference programmes that leverage US economic objectives while promoting predictable market access.”
The United States Fashion Industry Association (USFIA) is disappointed the Trump Administration has moved forward to impose new tariffs on major trading partners.
The organisation explained: “These tariffs ignore the complex Western Hemisphere supply chains and close trade ties created by textile and apparel companies during the more than 30 years since a regional free trade agreement first went into effect.”
It also pointed out the “Made in” label only tells part of a garment’s story.
“The journey of a simple cotton t-shirt is complex – from design and production to logistics and distribution. The Western Hemisphere’s apparel and textile supply chain is deeply intertwined and retaliation will hurt Americans – especially farmers, retailers and consumers.
“For example US cotton supplies about 60% of Mexico’s textile production needs, according to the USDA’s Foreign Agricultural Service. US government data also shows that in 2024, $3.1bn (or 3%) of US apparel imports came from our USMCA partners, Canada and Mexico,” USIFA added.
For the USFIA another concern is that apparel and textile products already face some of the highest tariff rates of any US imports, reaching as high as 32%.
It noted there will be a major impact on costs and inflation from the 20% tariffs on imports from China. China is the top supplier of apparel to the US consumer. According to US Customs and Border Protection, American businesses and consumers have already paid $220bn in additional tariffs under the China Section 301 from the first Trump Administration.
As a result the USFIA is urging the President and Administration trade officials to reconsider these tariffs and focus on supporting US families and US companies with lower costs and the benefits of trade.
National Retail Federation government relations executive vice-president David French also described the tariffs on North American partners as ultimately harmful to Americans and businesses supplying daily consumer needs.
He believes alternative measures for border security should be implemented instead of tariffs that inflate prices for consumers on household items.
He said: “Tariffs are just one tool at the administration’s disposal to achieve a secure border, and we urge it to explore other options to accomplish the same goals. As long as these tariffs are in place, Americans will be forced to pay higher prices on household goods. We urge the Trump administration and our Canadian and Mexican counterparts to work together to quickly resolve our outstanding border security issues.”
US footwear sector concerned about sales declines from tariffs
President and CEO of the Footwear Distributors and Retailers of America (FDRA) Matt Priest said his organisation “deeply concerned” about Trump’s decision to double emergency tariff rates and impose new tariffs on imports from Mexico and Canada.
He described the tariffs as taxes that will drive up the costs of everyday goods like shoes, significantly burdening US families and businesses.
Priest continued: “Our concerns are rooted in what we are seeing from the ground. According to our industry sales survey, for the week ending 22 February, footwear sales plunged -26.2% compared to the same retail week in 2024.
“Our survey includes over 3,000 stores. Sales declines hit every region of the country. This sharp decline isn’t just a typical business cycle fluctuation; it’s a clear indication of a shift in consumer behaviour and sentiment tied to the ongoing rise in inflation, which continues to grow, alongside concerns that new tariffs will push costs even higher.
“We remain committed to working with the administration to develop a thoughtful and surgical approach to tariffs that can strengthen our economy without placing undue strain on hardworking Americans.”
National Foreign Trade Council warns of trade war against US’s closest trading partners
National Foreign Trade Council (NFTC) Global Trade Policy vice president Tiffany Smith added: “Imposing tariffs on Canada and Mexico threatens to chill a collaborative effort to strengthen our shared border and risks starting a trade war with America’s closest trading partners.
She explained: “While we agree with concerns about illicit activity by China, escalating tariffs will continue to degrade global supply chains and increase costs for American businesses and consumers. Layering this new round of tariffs on Chinese imports creates additional headwinds and mounting costs for businesses that have little time to react or to make informed decisions on alternative sources of supply.”
Smith wants the administration to collaborate with leading trading partners to “quickly find a path forward to rescind these tariffs and avoid a trade war that will be costly for businesses and consumers”.
NCTO concerned about Canada, Mexico tariffs but maintains need for China tariffs, end to de minimis
The National Council of Textile Organizations (NCTO)’s president and CEO Kim Glas has issued her concerns on Mexico and Canada tariffs, while supporting the tariffs against China.
She said the newly imposed tariffs on imports from Mexico and Canada threaten a crucial textile and apparel coproduction chain with our two valued trade partners —one that sustains nearly 500,000 US jobs and a total of 1.6m jobs across North America.
“Destabilising this production chain coupled with the de minimis loophole will only exacerbate migration and the fentanyl crisis. We appreciate that President Trump has drawn much needed attention to these significant problems, but we believe there is another way that achieves critical objectives that grow US jobs, stabilises the Western Hemisphere, and closes dangerous tariff loopholes that are hurting us all. We want to work with the President to find solutions that work to meet all these objectives.”
Glas pointed out the US textile industry ships $12.3bn, or 53% of its total global textile exports to Mexico and Canada and those component materials often come back as finished products to the United States under the United States-Mexico-Canada Agreement (USMCA).
This coproduction chain under USMCA represents $20bn in two-way trade and spurs US investment in the region as well as at home.
She believes “penalty tariffs” on imports from “critical USMCA partners will only serve to benefit China and other Asian countries and harm the US textile industry, which has lost 27 plants in the past 20 months.”
On the other hand Glas welcomes the additional 10% penalty tariff on imports from China and would even encourage “higher penalty tariffs on China and recommend that these penalty duties be specifically targeted to finished apparel and textile imports”.
NCTO is keen to remind Trump that it is also important to close the de minimis loophole to all commercial shipments from China, Mexico and Canada, and more importantly from all countries.
Glas stated: “This loophole facilitates 4m shipments a day to the United States that often hide illegal and unethically made products, unsafe goods and illicit fentanyl and other narcotics to our doorsteps.”
She added: “Raising tariffs on countries without closing this destructive loophole will only serve to drive more shipments to the duty-free de minimis loophole. Incentivising greater use of de minimis will further harm US manufacturers and exacerbate the fentanyl crisis, because this loophole will continue to provide a workaround for importers of consumer products and drug cartels alike who are seeking to avoid punitive trade enforcement.”
