Made-in-US clothing company CEO says tariffs are boosting demand

Yahoo

27-04-2025

US President Trump has made tariffs a central part of his second administration in an effort to bring back manufacturing in the US. Clothing companies are among those hardest hit by hefty tariffs on imports from China.
American Giant founder and CEO Bayard Winthrop joins Julie Hyman on Asking for a Trend to discuss how tariffs have boosted demand for the company, which sources and manufactures almost all of its products in the US. Winthrop also discusses the company's new partnership with Jason Kelce.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
This earnings season has been littered with companies cutting or abandoning growth targets because of uncertainty over tariffs, but for a company that makes all of its products in the US, there could be benefits.
Joining us now, Bayard Winthrop, CEO of American Giant.
Bayard, thank you so much for.
Being your American giant is an American company that makes t-shirts and sweatshirts on their apparel all in the US.
So, first, I guess I would just ask, have you seen an increase in demand because of having all of your products made here?
Yeah, I think that the, the general uh uh awareness and thoughtfulness about where products are coming from is, is helping our business in that, in that way for sure.
And what about, you know, we've been hearing from a lot of companies that are saying they're going to see increased costs, uh, because of the tariffs, particularly other apparel companies that are importing their products.
So what's talk to me about your costs and what you have seen and what you think you will be seeing.
Yeah, there's no question that if, if the tariffs take any anything like the shape that they're being talked about now, particularly in regards to China, that that's gonna increase costs for traditional apparel companies that are sourcing in.
In China, Vietnam, uh, and internationally.
I think for us, um, when you make domestically, I think it is labor that you're really, uh, paying a differential on primarily.
The, the sources of fabric and things like that are, are, are quite equal to our international competitors.
Um, but we think that's a good thing.
We think that that good quality jobs and communities that need them, particularly low skilled work is a really critical piece that's been missing in the, in the American economy.
And I think, uh, um, that's why we chose to make our stuff prominent in the US and, um, and I think it's, uh, it's, we pay a premium for that, but we think that's a good thing.
we transitioned to good quality and the customers understand that.
um, you know, it seems as though maybe some of your competitors will be raising prices as they see these increased costs.
If competitors are raising prices, do you then see an opportunity to raise prices or the opposite?
No, I don't think so.
I don't think that we really are gonna respond to what our competitors are doing.
I think we're pretty focused on our core business model, which is making really great quality stuff in the US.
It's been that way for going on 15 years now, and we intend to continue to do that.
And the gyrations that are happening in the marketplace, I think, aren't gonna affect us very much.
And so we, we, we plan on just staying the course, um, and, you know, hopefully some of this volume is gonna come back to the US and, uh, and drive more, uh, more.
In the domestic supply chain that really needs it, and I think we would benefit from that.
So, so we're hopeful that that's going to result in more companies deciding to reshore domestically and bring some of their production closer to home.
Um, Byron, I'm curious about something more of sort of a bigger picture question for you.
It's almost a cultural question.
One of the things that Treasury Secretary Scott Besson has said is that we need to wean Americans, I'm I'm paraphrasing here, wean Americans.
Off of buying cheap crap from overseas and as somebody who makes both premium product that you sell directly as well as making contract stuff for the likes of Walmart, do you think it is possible to see that kind of possible and or desirable to see that kind of cultural change where people buy less but maybe spend more on those few items they're going to last?
Yeah, I think, I think what the secretary is saying is actually maybe a little bit more nuanced than that.
I think he's saying that the results of the policies of the last 40 years have resulted in a real addiction to cheap disposable goods and the outsourcing of all our manufacturing capability from textiles all the way through to uh to war fighting ships, things like that, and that there's a real need to rebalance our economy and the Chinese economy, that the Chinese economy has really tilted too far.
away from a consumption-based economy too much towards the manufacturing and exporting-based economy, and the US economy really has become too overextended as a purely consumption-based economy.
That may not be the best thing for your viewership that are very fixed focused on the performance of the stock market, but I do think the secretary has said quite clearly that he believes that the US economy needs to reclaim some of its manufacturing capabilities.
Um, I think that will Address the question you're talking about this, this, uh, this addiction to cheapness that really I think all Americans kind of intuitively understand that a lot of the things that we buy uh are quite different than they were 30 years ago when things lasted for a longer period of time, they were less disposable, better for the environment, arguably, um, so I think that's an ancillary impact from what the core uh intent of the policy that they're trying to enact is.
Um, Bayard, uh, uh, from a very big sort of existential question to a more fun one, you guys have partnered with Jason Kelsey for his, uh, clothing line.
Um, how did that partnership come about and, and how's it doing so far?
Well, if, if you know anything about Jason, he's a, he's a solid authentic guy that believes in the course of the values.
He has a, a foundation called Underdog that benefits kids in Philadelphia and beyond.
Um, and he, uh, felt that it mattered a lot to him and his value system that he made his clothes locally.
And, um, it's not the easiest thing to do.
And so he reached out to me about a year and a half ago and said, hey, could we do something together here?
And he's just been a great partner.
He's a, he's a heck of an advocate for real working people, and I think this partnership is an extension of that.
And, uh, it launched today.
So I'm hearing that it's selling like crazy.
Uh, you can go to the underdog site and buy it and support his foundation, uh, but it's early, so we're looking forward to a lot of good stuff to come.