logo
Will Trump Tariffs Help or Hurt U.S. Garment Workers?

Will Trump Tariffs Help or Hurt U.S. Garment Workers?

Yahoo25-04-2025

As garment workers in Bangladesh, Cambodia, Lesotho and Vietnam brace themselves for some of the most expansive of President Donald Trump's so-called 'reciprocal' tariffs, currently on hold, their counterparts in the United States are feeling the pressure from the stiff levies that are already in place, including an extra 145 percent—perhaps 245 percent?—punitive tax on Chinese goods.
They include women like Maria, a Los Angeleno who asked that only her first name be used because of potential retaliation. If the trade war drags on—or worse, escalates—the American businesses and workers that the president claims to want to put 'first' will be hit hard as the rising cost of necessary imports such as fabric, buttons, zippers, threads and machinery wipe out any advantage that increased orders from companies looking to avoid hefty tariff payments may afford. Already, the 10 percent 'universal' tariff that will serve as a baseline while the 90-day pause is still in effect is beginning to add up.
More from Sourcing Journal
Tariffs Weigh on Trucking Giants Old Dominion, Knight-Swift and TFI
Earthquake Rattles Istanbul, While Turkish Industry Looks Ahead
California Ports Brace for Sharp Tariff-Driven Volume, Traffic Drop
'Many people may not know this, but garment workers typically have to bring their own tools to work, and most of these tools are made in other countries, so this will take more money out of garment workers' pockets because our tools—trimmers, feet, sewing tweezers, bobbins—will become more expensive,' she said. 'Tools like sewing feet get worn down quickly and we have to replace them often. It's going to be hard to afford to replace them if they become much more expensive.'
As is the case elsewhere in the world, it's the worker at the supply chain's lowest rung that ends up bearing the brunt. Maria expects her already meager paycheck to shrink further still. Despite a 2021 law requiring Californian factories to pay the people who stitch their clothes the minimum wage, violations are still widespread.
She pointed out that while factories may gain more work, they may also lack the wherewithal to take it on. 'Basically, all the textiles we use to make clothes will also become more expensive,' she said, adding that the additional costs will end up hurting everyone, whether employer or employee. They could even lead to layoffs, which would have the opposite effect of what Trump said he wants.
A 2022 Department of Labor survey of 50 randomly chosen garment manufacturers in the Southern California area, for instance, found that half of them were illegally paying their workers off the books, including through the outlawed piece-rate system. In what investigators called a 'particularly egregious' case, one garment contractor paid its workers as little as $1.58 per hour. Garment workers elsewhere in the country have even fewer protections, though it hasn't been for a lack of trying.
'While tariffs are often framed as a way to protect American jobs, they can actually backfire when it comes to apparel by increasing jobs for brands without addressing the root causes of why domestic apparel manufacturing has declined,' said Katrina Caspelich, executive director of Remake, a fashion advocacy group that has been lobbying for federal legislation in the form of the Fashioning Accountability and Building Real Institutional Change—or FABRIC—Act.
Like its California predecessor, the FABRIC Act wants to end piece-rate payments, albeit at a national level. But it also proposes giving domestic manufacturers a leg up through a $50 million-a-year support program, administered by the Department of Labor, that would dole out grants and technical aid to help manufacturers with facilities and equipment upgrades, workforce development and safety training and improvements.
Caspelich said that fashion made in the United States can be part of a thriving future, but only if it's people-first. If the Trump administration wants to bolster local production—and in a way that's ethical and sustainable—it needs to pour in real investment, including expanding workforce development programs, bolstering labor protections, enforcing existing laws against wage theft and unsafe workplace conditions and offering tax incentives and grants to businesses that commit to fair labor practices at home.
'If we truly value 'made in America,' we have to value the people who make it possible,' she added. 'Instead of blanket tariffs, we need policies that directly invest in rebuilding the infrastructure for responsible domestic manufacturing.'
The fact of the matter is that the strength of domestic apparel manufacturing isn't what it used to be. After the advent of free trade and China's entry into the World Trade Organization sent production fleeing to cheaper climes overseas, only 2 to 3 percent of clothing sold in the United States is also cut and sewn in the United States.
The sprawling ecosystem of cotton ginners, yarn spinners, textile mills and dyeing and finishing houses that once underpinned any semblance of self-sufficiency has mostly been broken up and sold for parts. And the rest have been struggling to hang on, with more than a dozen textile plants permanently shuttering in 2024, according to the National Council of Textile Organizations, a lobbying group.
But Marissa Nuncio, director of the Garment Worker Center in Los Angeles, still can't help but feel a twinge of indignation whenever she reads takes that dismiss the existence of an American labor force. Roughly 100,000 garment workers still toil in the United States, most of them concentrated in downtown Los Angeles and New York City's Garment District.
'It's really important that the impact on workers doesn't get lost,' she said. 'It's also really important that there is a growing ecosystem of sustainable, ethical, high-road fashion businesses that are trying to change the industry from within, and they're directly impacted by this. Without attention to what it takes to support and bolster and build up domestic industry, we're going to see the negative impacts of these tariffs.'
Leaner paychecks aren't the only concern for garment workers. As the prices of groceries spiral upward, adding to the higher-than-average cost of living in cities like Los Angeles and New York, the squeeze is going to come from both sides, creating more financial duress. Garment workers also tend to be of immigrant extraction, with many of them undocumented women from Latin America and Asia. The White House's aggressive push to apprehend and deport as many people as it can has created a climate of fear and uncertainty over potential sweeps of their factory floors by Immigration and Customs Enforcement.
'It's an absolutely terrifying time,' said Nuncio, whose organization has held at least half a dozen 'know your rights' workshops in the various regions in L.A. County since November, complete with free consultations with immigration lawyers.
'We speak to our members; they have a lot of questions: what does this particular news or this executive order mean?' she said. 'We've heard from multiple members who said we had a real increase in ICE activity in the south L.A. region, where a lot of our members are, where our factories are. And we've heard from members who said, 'I didn't go to work today. I'm scared to go out.' That's a real direct impact. Folks need to be able to live their lives.'
Thousands of miles west in Brooklyn, where Roopa Pemmaraju, founder of Refugee Atelier, helps equip refugees and asylum seekers with the tailoring skills that will allow them to seek fair-paying jobs, the mood is one of resigned acceptance. These are people, she, said, who are used to being taken advantage of because of their desperation for a better life.
'They just say that if they have to get picked out, that's the reality and nobody can change that,' Pemmaraju said. 'But meanwhile, I'll continue to help them fill out their paperwork and get the right wages, connect them with affordable housing. That's what I'm focusing on now.'
Garment workers frequently skew older, too, said Jennifer Guarino, president and CEO of the Industrial Sewing and Innovation Center, or ISAIC, in Detroit, which trains young people in the fundamentals of advanced and automated apparel production at its 'factory classroom.'
Especially with technology in play, the problem isn't so much the labor force, she said, but whether there is a long-term commitment to sustain it. Consider, for instance, the rise and then collapse of the domestic personal protective equipment sector during the Covid-19 pandemic. As soon as China resumed exports of masks and gowns, the American businesses that rallied on a shoestring were abandoned en masse. The same fear infuses the industry today. What if American suppliers threw everything they had at expanding their capacity, only to see tariffs dissipate and orders dwindle once more?
'I think businesses have to get beyond this reactionary hair-on-fire response to tariffs and say, 'Oh, you know what? If it's not this, it's going to be another,'' Guarino said. 'What we really need to do is commit to a transformative supply chain that will be good no matter what happens with tariffs. And that it'll be better for us in the long term, for our business and the environment.'
ISAIC sees its trainees as more than just future bodies on a production floor. It's not just training sewing operators, she said, but 'flexible product fabricators' that, yes, can sew, but they can also run digital cutting machines or interface with digital embroidery and printing. Making jobs higher-skilled and higher-wage will make it more appealing to the next generation, but it also requires reassessing talent development.
'When I hear manufacturers say, 'We can't find enough sewers,' well, it's just not the right answer. It's just doing it the old-fashioned way,' she said. 'So, at least from our perspective, the talent will be there, but you have to present a different career value proposition. You need the dedicated commitment that the jobs will be there.'
That the online shopfront for the L.A. Olympics in 2028 has, as far as he can tell, no products that are made in Los Angeles, is a sign that larger impediments are involved, said Daniel Cardazo, CEO of Ethix Merch, a responsibly sourced swag merchant that founded the Alliance for Responsible Apparel Manufacturing & Purchasing—ARAMP, for short—with the Garment Worker Center, the Sweat-Free Purchasing Consortium and others to provide a vetted marketplace of high-road L.A. manufacturers that 'take care of their workers the right way.'
'I can't tell you how many labor unions there are that we talk to—that we lose business to—because they go and they buy imports for their rallies, events and giveaways without any kind of labor regulations behind them, because it's written into the DNA of the economy at this point that you just get the best deal, and you don't have to do the work to identify the impact that your purchases have,' he said. 'And now there's no system in place for the Olympics to support its own garment industry whatsoever.'
Cardazo thinks that the tariffs, done properly, could bring some clothing manufacturing back to the United States. The problem is that he has little faith that this is the case. He wouldn't be surprised, in fact, if most of the new work ends up going to sweatshops.
'There's no prep work being done to invest in the industry on the front end so that we can have the capacity to take advantage of these opportunities,' he said. 'There's no guarantee that these tariffs are going to last. The administration has been extremely capricious about it. They're coming, they're being lowered, they're being raised, they may be paused, etc. It doesn't give the industry the opportunity to invest because you don't know what's coming down the road.'
Then there's the fundamental flaw that Christian Birky, founder of Because Capital, a firm that focuses on reducing overproduction in fashion, and co-founder of ISAIC, sees as that reason many garment workers, including those in the United States, have to grapple with near-, if not below-poverty wages. For reshoring to take, he said, brands will have to recognize that the current tack of massive overproduction, followed by selling off the surplus at deep discounts, is not a viable financial strategy.
'The capital that we need to invest in better wages and to treat people fairly in this industry is tied up in huge amounts of clothing being produced that we don't need,' he said. 'That's the reality of it. And until we address that, we're going to be playing in the margins. We make too many garments for the number of garments that we sell.'
Nuncio agreed. The notion that tariffs are going to rebuild American apparel manufacturing is an incomplete analysis, especially from a worker organizing standpoint. And ARAMP, she said, is getting close to being able to run a pilot to see what 'forward-looking' partnerships and solutions might look like. Otherwise, fashion production will continue to be a race to the bottom, whether in the United States or overseas.
'Workers are the backbone of the industry,' she said. 'They're the ones who can articulate what are the needs of the industry. And for us that that needs to be a focus in this conversation: What's needed to keep good, dignified jobs present and growing for them?'
New York and California are among the states suing the Trump administration for 'illegally imposing' tariffs through the International Emergency Economic Powers Act, which imbues the president with extraordinary economic powers during a national emergency. But the cities where garment workers are concentrated, like Los Angeles, could do more to help garment workers, too, Maria said.
'The city would have the power to price things at the necessary level for the workers to make what they should be making,' she said. 'The city could make the choice to invest taxpayer dollars in good-paying jobs. In the end though, it's not just our tools and materials that will increase in cost, but likely everything in our lives will go up: cost of food, everything. And this will cause more financial stress in our lives.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The Surprising Impact of Trump's Tariffs On American Farmers
The Surprising Impact of Trump's Tariffs On American Farmers

Newsweek

time31 minutes ago

  • Newsweek

The Surprising Impact of Trump's Tariffs On American Farmers

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. American farmers are once again caught in the crossfire of Trump's trade wars. Despite a 90-day tariff truce with China, they continue to face rising export costs for soybeans, corn and pork, along with effects from earlier retaliatory tariffs and export restrictions. The numbers tell a stark story. U.S. soybean exports to China experienced a significant decline during the height of trade tensions. According to data from the United States Department of Agriculture (USDA), from mid-2018 to the end of 2019, retaliatory tariffs imposed by six major trading partners—Canada, China, Turkey, Mexico, the EU, and India—resulted in estimated losses of over $27 billion in U.S. agricultural exports. Soybeans alone accounted for more than 70 percent of those losses. The financial strain has left many farmers relying on taxpayer-funded bailouts. "Input costs for farmers remain a challenging factor, further compounded by ongoing uncertainty in markets," Evan Hultine, Vice President of Illinois Farm Bureau (IFB), told Newsweek. "It's hard enough to market in the weather, let alone add the volatility within the markets." Despite the economic toll, political loyalty to Trump among many farmers has remained strong. However, analysts warn the cycle of trade disruption and federal compensation is not only unsustainable but damaging to the long-term health of American agriculture. "I don't think farmers support protectionist trade policies—they support Trump for other reasons—mainly social or cultural issues—even though trade wars are bad for their bottom lines," Tad DeHaven, a policy analyst at the Cato Institute and former Senate policy adviser told Newsweek. DeHaven's analysis highlights a paradox. While Trump's trade wars have hurt farmers financially, the Trump administration sought to "buy off" the agricultural sector with billions in subsidies. "Farmers were bailed out by taxpayers in the first Trump administration," he said. "Knowing that they would likely be bailed out again, farmers were more willing to accept the economic pain." That pain, however, was significant. During Trump's first term, China—previously the largest buyer of U.S. soybeans—retaliated against U.S. tariffs with tariffs of their own. Even after a 2020 trade agreement partially restored soybean exports, the damage had been done. According to DeHaven, China, along with other trading partners, began shifting to more reliable suppliers, like Brazil and Argentina. "Rather than stabilize agricultural production, [Trump's] tariff-driven bailouts deepened dependency and inefficiency," he noted. "They introduced uncertainty and compelled importers in countries like China to source more of their ag imports from other countries." Illinois Farm Bureau/Catrina Rawson Analysts observe that Chinese importers are now turning to South America for poultry and pork and eyeing Australia for wheat, sorghum and barley. Canada and Mexico, also targeted by Trump's trade barbs, have begun diversifying their import portfolios away from the U.S. Meanwhile, U.S. farmers are being squeezed on the cost side. Tariffs on steel and aluminum have driven up the cost of farm equipment, while trade restrictions have made key inputs like fertilizer more expensive. Canada, the largest supplier of potash—a vital fertilizer ingredient—has faced barriers under Trump-era trade policies, contributing to higher input prices at home. "Increased tariffs mean reduced market access and higher costs," DeHaven said. "Trump effectively treats all imports as bad, but U.S. agriculture depends on open markets both to sell goods and buy inputs affordably." To offset the fallout from these policies, Trump's first term saw $23 billion in direct payments to farmers. And the cycle is poised to repeat. Agriculture Secretary Brooke Rollins has already announced a new $10 billion round of taxpayer-funded farm bailouts authorized in late 2024. But experts warn this model is unsustainable. "If history repeats itself, American farmers—caught once again in the crossfire of economic nationalism—will be left with fewer markets, more expensive supplies and increased reliance on federal aid," DeHaven said. "For taxpayers, the bill will be high. And for U.S. trade credibility, the cost may be even greater." Illinois Farm Bureau/Catrina Rawson On May 15, Sec. Rollins visited the UK to strengthen ties and champion U.S. farmers and ranchers. Over the next five months, she'll tour Japan, Vietnam, Brazil, Peru, Italy and India to open new markets and boost exports. USDA spokesperson Seth W. Christensen told Newsweek that Sec. Rollins top priorities are increasing access for American products in existing markets, opening new markets with strong demand for our products and making sure trading partners are treating American farmers, ranchers and producers fairly. Meanwhile, Hultine said the IFB continues to push for a five-year Farm Bill, emphasizing the need for consistent support and strategic market development both domestically and globally. DeHaven believes that the key lies in shifting away from reactionary financial relief and toward trade liberalization. He argues that rather than insulating farmers with bailouts, the government should support policies that expand trade, giving farmers greater access to global markets and reducing the cost of essential inputs like machinery, fertilizer, and herbicides. Instead, the administration's trade policies have limited market access for U.S. goods, creating challenges for the agricultural sector that it publicly champions.

Trump's trade talk delegation is set to face off with China's negotiators in London. Here is what's at stake.
Trump's trade talk delegation is set to face off with China's negotiators in London. Here is what's at stake.

Yahoo

timean hour ago

  • Yahoo

Trump's trade talk delegation is set to face off with China's negotiators in London. Here is what's at stake.

Top Trump officials are meeting Chinese negotiators in London on Monday. This would be the first official US-China talk since a temporary tariff truce on May 12. International trade experts have said that Trump could be under pressure to strike a deal. Three top Trump administration economic officials will face off against Chinese negotiators in a renewed effort to break the US-China trade deadlock. Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and Trade Representative Jamieson Greer will be meeting China's delegation in London on Monday. "The meeting should go very well," President Donald Trump wrote in a social media post announcing the talks. This coming meeting will be the first official talk between the two countries since they mutually lowered tariffs in a temporary truce on May 12, after talks in Geneva. The renewed talks follow a 90-minute phone call between Trump and China's leader Xi Jinping on Thursday, a rare direct conversation that Trump later described as "very good." According to Trump, the two leaders also agreed to visit each other in person, without providing more details in terms of a timeline. The Chinese Embassy of Washington did not respond to a request for who would be attending this negotiation from its side. The team they sent to Geneva consisted of Vice Premier He Lifeng, Vice Commerce Minister Li Chenggang, and Vice Finance Minister Liao Min. Notably, Li has a Master of Laws from the University of Hamburg in Germany and has been part of China's delegation to the World Trade Organization since 2021. International trade experts previously told Business Insider that much is at stake for both China and the US to strike a deal, or at the very least, continue the truce beyond August 12 when the 90-day tariff pause will expire. "The Trump administration made their job harder because the tariff policies they've implemented are costly to Americans and American companies, and therefore, the market doesn't like it," said Philip Luck, director of the CSIS Economics Program. "They are under a lot of pressure to do things fast." Meanwhile, a lawsuit that threatens to undo all of Trump's tariffs enacted under the IEEPA also looms over negotiations with China. Drew DeLong, lead in geopolitical dynamics practice at Kearney, a global strategy and management consulting firm, told BI that if the court strikes down tariffs before trade deals could come to pass, other routes of imposing tariffs could be more complicated and time-consuming. The White House did not provide Business Insider with any additional comment beyond Trump's Truth Social post. Read the original article on Business Insider

US, Chinese officials to meet in London next week for new round of trade talks

timean hour ago

US, Chinese officials to meet in London next week for new round of trade talks

WASHINGTON -- Senior U.S. administration officials will meet with a Chinese delegation on Monday in London for the next round of trade negotiations between Washington and Beijing, President Donald Trump said Friday. The meeting comes after a phone call between Trump and Chinese leader Xi Jinping on Thursday, which the U.S. president described as a 'very positive' conversation as the two countries attempt to break an impasse over tariffs and global supplies of rare earth minerals. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer will represent the U.S. side in the trade talks. 'The meeting should go very well,' Trump wrote on his social media platform Friday afternoon. Speaking to reporters on Air Force One Friday, Trump said Xi had agreed to restart exports of rare earth minerals and magnets to the U.S. which China had slowed, threatening a range of U.S. manufacturers that relied on the critical materials. The was no immediate confirmation from China. The Thursday conversation between Trump and Xi, who lead the world's two biggest economies, lasted about an hour and a half, according to the U.S. president. The Chinese foreign ministry has said Trump initiated the call. The ministry said Xi asked Trump to 'remove the negative measures' that the U.S. has taken against China. It also said that Trump said 'the U.S. loves to have Chinese students coming to study in America,' although his administration has vowed to revoke some of their visas.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store