2 days ago
US garment spending dips, imports rise amid tariff uncertainty
US consumer spending on garments fell by 0.7 per cent month-over-month in April 2025, despite a 4.6 per cent year-over-year increase. The CPI for garments also dipped by 0.1 per cent month-over-month and 0.5 per cent year-over-year, according to Cotton Incorporated.
Meanwhile, imports of cotton-dominant apparel rose 13.4 per cent from a year earlier, maintaining average import costs near $3.70 per square meter equivalent since late 2023.
US garment spending fell 0.7 per cent in April despite a 4.6 per cent annual rise, while cotton-dominant apparel imports rose 13.4 per cent year-over-year. Garment CPI declined slightly, and import costs remained stable. Tariff uncertainty looms as courts challenge the President's authority under IEEPA. Job growth slowed to 139,000 in May, with unemployment steady at 4.2 per cent.
This import activity occurred amid ongoing trade uncertainty. In April, the US began implementing broader tariff increases, prompting mixed responses from retailers—some pulled orders forward to avoid higher duties, while others delayed shipments in hope of a rollback. The situation was further complicated in late May by two court rulings that questioned the President's authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariff changes. These decisions, now under appeal, may escalate to the Supreme Court, with existing tariff rates currently remaining in place, Cotton Incorporated said in its Executive Cotton Update - US Macroeconomic Indicators & the Cotton Supply Chain - June 2025.
The US economy added 139,000 jobs in May, though prior months were revised down. The unemployment rate held steady at 4.2 per cent—its highest since 2021, yet historically low. Wage growth continued to moderate, rising 3.9 per cent year-over-year.
Consumer confidence rebounded in May, with the Conference Board's Index rising by 12.3 points to 98 after five consecutive months of decline. Broader consumer spending rose just 0.1 per cent in April, following a strong 0.7 per cent increase in March.
Ongoing tariff negotiations are set to conclude by July 9 for most partners and mid-August for China. If unresolved, reciprocal tariffs may take effect, posing further challenges for retailers and global supply chains.
Fibre2Fashion News Desk (KD)
