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Portugal's textile and clothing (T&A) industry is trying to negotiate a new deal with the Trump administration to lower tariffs. The new 15 per cent tariffs on European Union (EU) goods went into effect on September 1, and the industry is concerned that products that previously had a lower tariff will now have to pay 15 per cent, while those with a higher tariff will not see a reduction.
According to Ana Dinis, Director-General, Textile Association of Portugal (ATP), the process has been difficult with ongoing negotiations where information seems to change daily. Still, the ATP remains hopeful for a positive outcome soon.
César Araújo, President, National Association of Clothing and Apparel Industries (Anivec), noted, there are various interpretations of the new tariffs, and it's still uncertain which products will be affected and by how much.
According to ATP data, Portugal exported €435 million in textile and clothing products to the US in 2024. The US market accounts for 8 per cent of the sector's total exports, with revenues of around €500 million.
The ATP estimates, the new tariffs could lead to 10,000 layoffs in the textile industry across more than 6,000 companies in Portugal. The Bank of Portugal reported, two years ago, the sector had a turnover of over € 8 billion.
A global leader in commercial credit risk management, Coface believes the new 15 per cent tariff is a compromise that avoids the 30 per cent double tariff initially proposed by the U.S. president. However, it still represents a significant increase from the 1.2 per cent rate applied in 2024.
As part of the new agreement, the EU has committed to investing $600 billion in the US and purchasing $750 billion in US energy products over three years. The feasibility of these commitments has been widely questioned by analysts and European leaders.
The global apparel trade is showing a patchwork of resilience and volatility as the latest data from the Wazir Advisor’s ‘Global Apparel Trade & Retail Update Report for August 2025’. It highlights that while consumer demand remains robust in key markets, supply-side dynamics continue to shift, shaping the fortunes of exporters across Asia.
Imports show the West still hungry for fashion
June 2025 import figures show that major consuming markets particularly the US, the EU, the UK, and Japan are steadily raising their demand for apparel.
The US, still the world’s single largest consumer of fashion, imported $6.5 billion worth of apparel, marking a 5 per cent increase year-on-year. While modest compared to other markets, the growth signals steady demand despite economic uncertainty. The EU stood out with a sharp 21 per cent jump in apparel imports, totalling $7.4 billion. Analysts attribute this growth to stronger summer season buying and retailers replenishing stock amid robust consumer demand in Germany, France, and Italy. Japan posted a 7 per cent rise, importing $1.6 billion, reflecting its consumers’ steady return to discretionary spending. The UK saw perhaps the most striking trend, with imports climbing 29 per cent to $ 1.8 billion, a rebound linked to strong e-commerce growth and higher holiday-season purchases.
In exports, Bangladesh steals the spotlight
On the supply side, the July 2025 export data underscores how global sourcing patterns are continuing to evolve. China, the industry’s traditional powerhouse, shipped $14.7 billion worth of apparel, essentially flat compared to last year. While still dominant, China’s growth plateau highlights rising competition and diversification of sourcing. Bangladesh, in contrast, registered a 25 per cent jump in exports, reaching $4.0 billion. With its low-cost advantage and increasing compliance with sustainability standards, the country continues to cement its position as a reliable sourcing hub. India, however, reported $1.3 billion in exports, unchanged from a year earlier. This stagnation comes despite strong domestic retail demand, raising concerns about India’s competitiveness in the global supply chain. Vietnam clocked in $3.6 billion in exports, up 9 per cent, underscoring its reputation as a preferred destination for high-quality and diversified sourcing, particularly for US and Japanese buyers.
Retail Trends: Strong sales, e-commerce divergence
Retail performance presents a mixed picture. In the US, July 2025 apparel sales grew by 7 per cent, with home furnishings following close behind at 6 per cent. Yet the online marketplace told a different story, e-commerce sales of clothing and accessories dipped 3 per cent in Q2 2025, compared with the same period last year. Analysts suggest saturation in digital channels and a renewed tilt toward physical retail as consumers return to stores.
The UK, by contrast, reported a 2 per cent rise in online clothing sales in Q2 2025, mainly due to strong uptake of fast-fashion platforms and omnichannel shopping models. Closer to home, India’s apparel retail sales rose 10 per cent in June 2025 year-on-year, reflecting both festive pre-purchases and growing discretionary spending among middle-class households. This growth, industry insiders say, is being led by smaller cities and Tier-II markets, where consumers are increasingly shopping both online and offline.
The macroeconomic backdrop, US’ uneasy balance The US economy remains a critical barometer for global trade flows. In July 2025, the Consumer Confidence Index ticked up to 97.2 from 95.2 in June, showcasing optimism. But the labor market showed fragility as 73,000 jobs were added, while the unemployment rate edged up to 4.2 per cent from 4.1 per cent. Retailers remain cautiously optimistic, watching whether consumer demand will sustain momentum through the holiday season.
Table: Apparel imports in June 2025 ($ bn)
|
Region |
Imports |
YoY Growth |
|
US |
6.5 |
+5% |
|
EU |
7.4 |
+21% |
|
Japan |
1.6 |
+7% |
|
UK |
1.8 |
+29% |
Table: Apparel exports in June 2025 ($ bn)
|
Country |
Exports |
YoY Growth |
|
China |
14.7 |
0% |
|
Bangladesh |
4 |
+25% |
|
India |
1.3 |
0% |
|
Vietnam |
3.6 |
+9% |
The August 2025 apparel update indicates a world in transition. Consumer demand in Western markets remains healthy, but sourcing shifts are increasingly favoring agile, low-cost, and sustainable producers like Bangladesh and Vietnam. India’s flat export performance, despite strong domestic demand, underscores the urgency for policy support and industry innovation if it is to capture a greater share of global apparel trade.
With festive seasons approaching in South Asia and the holiday shopping wave in the West around the corner, the next quarter will be critical in determining whether these growth trends hold firm or whether volatility in macroeconomic conditions begins to dampen momentum.
Global textile and apparel industry's most anticipated event, Intertextile Shanghai Apparel Fabrics – Autumn Edition 2025 officially opened at the National Exhibition and Convention Center. To run until September 4, 2025, the three-day trade fair serves as dynamic hub for innovation, a barometer of future trends, and a crucial meeting point for industry leaders from around the world.
This year’s event focuses on two important pillars: sustainability and digital innovation. The fair's dedicated Econogy Hub is a testament to this commitment, showcasing cutting-edge, eco-friendly products and processes. Exhibitors in this zone are highlighting everything from recycled fabrics and organic cotton to low-impact dyeing techniques, providing solutions for brands seeking to meet growing consumer demand for greener products.
The Digital Solutions Zone offers a glimpse into the future, featuring technologies like AI-driven design software, 3D body scanning, and automated manufacturing systems that promise to revolutionize the supply chain.
Navigating the global supply chain
As an important sourcing platform, Intertextile Shanghai proves as a vital link in the global textile value chain. The event offers an unparalleled opportunity to international buyers and brands to connect directly with suppliers and manufacturers from across Asia and beyond. The diverse product zones cater to every need, from high-end luxury to everyday essentials. In SalonEurope, European exhibitors are presenting their latest collections of premium fabrics. Meanwhile, the Beyond Denim zone is showcasing innovative denim washes, sustainable materials, and new fabric constructions.
The Functional Lab is drawing a lot of attention, with its display of performance fabrics designed for sportswear and activewear. Attendees can also find every accessory imaginable in the sprawling Accessories Vision section, which is filled with everything from zippers and buttons to decorative trimmings.
Knowledge and networking
A major attraction of this event is the fair's robust program of educational events and networking opportunities. A series of seminars, workshops, and forums are delving into topics that will shape the industry for years to come. Experts are leading discussions on next season's trends for A/W 2026/27, providing valuable insights for designers and buyers.
Other sessions are exploring the transformative role of AI in textile design, new strategies for sustainable practices and circularity, and key market trends. These events provide a crucial platform for knowledge exchange and strategic planning, helping attendees stay ahead in a fast-paced market.
Being held concurrently with Yarn Expo Autumn and CHIC, Intertextile Shanghai –Autumn Edition creates a one-stop-shop for the entire textile and apparel industry. This synergistic approach allows buyers to source everything from raw materials to finished garments under one roof, strengthening the fair's status as a comprehensive and indispensable industry event.
London-based designer Patrick McDowell has refreshed its brand identity with a new wordmark and monogram. This refreshed look is meant to reflect the brand's evolution and prepare it for future growth.
The designer is scheduled to host a show on September 20 during London Fashion Week, a platform he has used to build his brand by championing responsible design and luxury.
Developed in partnership with the creative consultancy Duncan Fenech, the new wordmark and monogram is inspired by Marie Antoinette, the last Queen of France. The consultancy says her ornamental influence was transformed into a powerful symbol of renewal, capturing the brand's ability to turn classical inspiration into a modern, relevant aesthetic. The new monogram is described as both fluid and feminine, blending softness with precision while also referencing traditional craftsmanship.
Luke Fenech, Creative Director, Duncan Fenech, says, the new identity celebrates the brand’s values of circularity and British craftsmanship.
A global leader in developing fiber and technology solutions for the apparel and personal care industries, The Lycra Company made a comeback to Intertextile Shanghai with an exclusive global preview of its latest innovations in denim fabrics.
For the first time, the company's booth features an open-concept co-creation space designed to foster collaboration. Four key industry partners join The Lycra Company in this shared exhibit space, located in Hall 4.1 (Booth E56). This area is part of a larger 788-sq-m pavilion, which also includes 18 co-exhibitors. The impactful and visually striking design brings the new All In Lycra brand positioning to life, creating an immersive experience for visitors.
This new positioning highlights the company's commitment to helping partners stay competitive with advanced fiber solutions that enhance their products' capabilities.
Visitors to The Lycra Company’s booth can explore the company innovations like the Lycra Vintage FX denim technology, bio derived Lycra Ecomade fiber, Lycra FitSense denim technology, Coolmax EcoMade Fiber and Thermolite Ecomade fiber.
The four partners in the open pavilion showcase Lycra fiber across the value chain—from yarn to finished garment.
A leading global fiber and technology solutions provider to the apparel and personal care industries, the Lycra Company is committed to offering sustainable products using renewable, pre-, and post-consumer recycled ingredients that reduce waste and help set the stage for circularity. Headquartered in Wilmington, Delaware, United States, it owns the Lycra, Lycra Hyfit, Lycra T400, Coolmax, Thermolite, Elaspan, Supplex and Tactel brands.
Following the recent 50 per cent tariffs imposed by the US on Indian goods, several Indian companies are strategically shifting their operations to Africa to maintain access to the American market. This move is a direct response to the punitive tariffs, which were a consequence of India's continued purchases of Russian oil.
Companies like apparel manufacturer Gokaldas Exports and premium garments maker Raymond Lifestyle are among those looking to expand production in African countries, where US tariffs can be as low as 10 per cent. The tariffs have hit labor-intensive sectors such as jewelry and apparel the hardest, with a recent Bloomberg Economics note suggesting that exports of some goods could drop by as much as 90 per cent.
The tariffs are expected to more than halve India's overall exports to its largest market, the US/ In 2023, India exported over $20 billion in textile products, jewelry, and diamonds to the U.S.
Sivaramakrishnan Ganapathi, Managing Director, Gokaldas Exports, confirms, his company plans to continue expanding its presence in Africa to offset the high tariffs. Gokaldas already operates four factories in Kenya and one in Ethiopia, both of which face a 10 per cent US tariff. Similarly, Amit Agarwal, CFO, Raymond Lifestyle, notes, the company is in talks with its American clients to increase shipments from its Ethiopian plant.
African nations have emerged as a viable alternative for Indian companies due to favorable business environments. Countries like Ethiopia, Nigeria, Botswana, and Morocco are offering various incentives, including tax holidays, customs duty exemptions, and value-added tax (VAT) exemptions, to attract foreign investment.
In a bid to address a long-standing issue threatening the man-made fiber (MMF) textile industry, the Northern India Textile Mills Association (NITMA) has urged the Union Finance Minister and the GST Council to ensure a uniform GST rate of 5 per cent is levied on both Polyester Staple Fiber (PSF) and Polyester Staple Yarn (PSY), thus aligning them with the tax on fabrics and garments.
This change would eliminate the inverted duty anomaly, free up capital, and make the spinning industry financially sustainable, states Siddharth Khanna, President, NITMA.
A failure to act on this could lead to widespread factory shutdowns and job losses across the country, Khanna adds. He highlights, while the cotton value chain enjoys a uniform 5 per cent GST on all its products, the MMF sector faces disparate tax rates that create a significant imbalance. The current GST framework taxes PSF at 18 per cent, polyester spun yarn PSY)at 12 per cent, and MMF fabrics and garments at just 5 per cent. This misalignment means manufacturers get taxed more for their raw materials than for their finished products, leading to a financial logjam.
This structure is an existential threat to the industry, emphasizes Khanna. The high tax on raw materials like PSF forces companies to block a significant portion of their annual turnover in GST refunds, leading to high interest costs on locked capital and complex refund procedures. The tax on new capital investments is also hiked by 18 per cent, making it expensive to modernize. Moreover, imported yarns, which don't face this domestic tax structure, gain an unfair advantage, directly undermining the ‘Make in India’ initiative.
Amazon finds itself at the center of a new wave of legal and regulatory scrutiny in Europe, as two major actions challenge its long-standing price-parity policies. In the UK, a consumer group is spearheading a massive class action lawsuit on behalf of millions of customers, while in Germany, antitrust regulators are probing the company's algorithm-driven pricing mechanisms. These cases highlight a shift from past regulatory battles over explicit clauses to a new front focused on the subtle, yet powerful, influence of algorithmic control.
UK class action seeks compensation
The Association of Consumer Support Organisations (ASCO) has initiated a collective opt-out class action against Amazon in the UK, alleging that the e-commerce giant's policies forced consumers to pay inflated prices. The lawsuit, filed with the Competition Appeal Tribunal, represents over 45 million customers who purchased from third-party sellers on the platform between August 2019 and August 2025.
ASCO argues that while Amazon formally removed its explicit price-parity clauses, it has continued to enforce price alignment through other means, such as its ‘Fair Pricing Policy’ and its dominant Buy Box algorithm. This, according to the group, restricts sellers' ability to offer lower prices on competing platforms and ultimately harms consumers.
In a statement, Amazon responded that the claim is "without merit," citing an independent analysis by Profitero that found Amazon to be the lowest-priced online retailer in the UK for the fifth consecutive year.
German regulators probe algorithmic controls
Simultaneously, Germany’s Federal Cartel Office (Bundeskartellamt) has raised its own concerns about Amazon’s pricing mechanisms. The regulator is investigating whether the company's system, which highlights competitively priced listings and suppresses those it deems "overpriced," violates competition laws.
The investigation focuses on how Amazon's algorithms can first, suppress visibility. Listings flagged as ‘uncompetitive’ may be demoted in search results, excluded from advertising, and lose the coveted Buy Box the white box on a product page where a customer can add an item to their cart. Also under the radar is pricing pressure. Sellers who don't comply with Amazon’s dynamically calculated price caps risk being removed from the marketplace altogether, effectively forcing them to align their prices. This marks a new phase of regulatory enforcement, moving beyond the simple presence of a price-parity clause to scrutinizing the opaque, complex code that governs the marketplace.
The historical shift from clauses to code
The current legal challenges are the culmination of a decade-long battle over Amazon's pricing practices.
Table: Amazon’s policies under scrutiny
|
Jurisdiction |
Explicit parity clause |
Algorithmic enforcement |
|
Europe (EU) |
Removed in 2013 following antitrust probes. |
Under review by German Federal Cartel Office and EU's Digital Markets Act. |
|
US |
Removed in 2019 amid mounting antitrust scrutiny. |
Subject of lawsuits from D.C. Attorney General and class action plaintiffs. |
After the official removal of its clauses, Amazon has faced accusations of replacing them with functionally equivalent policies. Attorneys general in Washington, D.C. have argued in court filings that policies like the Fair Pricing Policy and the Buy Box algorithm are designed to maintain price alignment and prevent sellers from undercutting Amazon on other platforms.
Experts say that ending price-parity clauses can lead to tangible benefits for consumers. A 2021 study by Yu Song of the University of Michigan analyzed the impact of Amazon's 2019 decision to drop its price-parity clauses in the US.
Table: Study findings
|
Outcome |
Impact |
|
Prices on Amazon |
Decreased, especially for products sold directly by Amazon. |
|
Prices on eBay |
Also decreased, showing increased competition between platforms. |
|
Impact on Sellers |
Greater price flexibility, leading to lower prices on all platforms. |
The findings of the study align with economic theory, showcasing that when a dominant platform loses its ability to enforce pricing across the web it fosters greater platform competition and results in lower prices for consumers.
Legal and regulatory precedents
The outcome of the UK and German cases will set important precedents. The UK class action, if it proceeds, could result in significant financial compensation for millions of consumers. In the US, similar litigation from the D.C. Attorney General's office is ongoing and could further define the legal boundaries for platforms. The European Union's Digital Markets Act (DMA), which came into force in March 2024, is also a key factor. The DMA designates Amazon as a ‘gatekeeper’ and prohibits unfair practices, including those that might enforce a de facto price-parity. This gives regulators powerful new tools to examine and intervene in the very algorithms that govern Amazon’s marketplace.
As regulators and courts increasingly focus on the behavior of a platform's algorithms, the debate over price-parity is no longer about a simple contract clause but about the fundamental fairness and transparency of digital marketplaces.
The value of the global market for women's apparel is projected to grow at a 4 per cent CAGR to reach $1.28 trillion by 2033. This growth is being driven by a number of factors, including a growing global female population, rising awareness of women's rights, and an increased focus on personal style and well-being. The industry is also being reshaped by the rapid rise of e-commerce and a growing demand for sustainability.
Technological advancements are playing a crucial role in this transformation. The development of eco-friendly and recycled fabrics is a key trend, with brands like the Indian athleisure company aastey introducing sustainable blends. Additionally, tech innovations are enhancing the online shopping experience. Virtual try-on technologies and AI-driven personalization are helping consumers visualize how clothes will fit, which boosts satisfaction and reduces returns. The use of data is also transforming product development, as seen with ThirdLove, a company that used 600 billion data points to create better-fitting bras.
Demand for women's apparel is also being influenced by key social and economic trends. The global female population is projected to reach parity with males by 2050, expanding the consumer base. The rise of urbanization and increasing disposable incomes in emerging economies are also fueling growth. A growing number of working women is boosting sales of formalwear and activewear. This has also created new opportunities for brands that are focusing on size inclusivity and sustainable fashion to cater to a diverse consumer base.
From a market segmentation perspective, tops, shirts, t-shirts remain the top investment segment due to their versatility and broad appeal. The online sales channel is projected to grow at a 5 per cent CAGR, driven by the shopping habits of Millennials and Gen Z. The 18-35 age demographic is a key target market, as younger consumers influence trends through social media. Geographically, key countries like India, the United States, and China are leading the market, each with unique drivers. For example, the US market is being shaped by trends in inclusivity and casualization, while China is benefiting from its growing middle class and increasing demand for premium and sustainable clothing.
Indonesia is actively engaging in the global fashion scene by sending designers and industry representatives to two major international events: the BRICS+ Fashion Summit in Moscow and Front Row Paris.
Held annually in Moscow, Russia, the BRICS+ Fashion Summit brings together industry leaders and creatives from over 60 countries to discuss the future of the global fashion industry. The key themes revolve around decentralization and democratization, with a focus on showcasing emerging fashion markets and fostering cross-cultural collaboration.
The summit provides Indonesian designers with a platform to discuss industry challenges, promote their work, and forge new partnerships. Ali Charisma, President, Indonesian Fashion Chamber (IFC), has previously been a delegate at this event.
Scheduled to be held on September 6, 2025 in Les Salons Hoche, Paris, Front Row Paris is a flagship initiative by IFC to promote Indonesian traditional fabrics and textiles, known as wastra, to the European market. It aims to position Indonesia as a significant player in the global fashion industry.
Themed ‘Wastra Beyond Borders,’ the 2025 event features seven Indonesian designers and fashion brands. The event also coincides with the 75th anniversary of diplomatic relations between Indonesia and France, serving as a platform to strengthen cultural diplomacy through the creative economy. The Indonesian Embassy in Paris supports the event, underscoring its importance in showcasing the country's unique creative and cultural heritage.
