A report from the US Fashion Industry Association lists, rising production and sourcing costs and protectionist trade policies have emerged as the fashion companies' top business challenges in 2019. According to the survey, the number of companies holding a positive five-year outlook dropped from 84 per cent in 2018 to 64 per cent in 2019.

The report also noted around 83 per cent of the respondents to the survey plan to reduce their sourcing from China. Only 6.7 per cent of respondents plan to "reduce sourcing significantly" however, demonstrating the continued business value of maintaining a presence in China. Half of the respondents said their Chinese vendors lowered prices in an attempt to keep from losing customers to Vietnam, currently the alternative manufacturing country of choice.

According to the report, during 2018, American fashion brands and retailers paid more than $12 billion in tariffs on apparel and home textiles and another $3 billion on imported footwear. In spite of these costs, the effect on US reshoring has been negligible. The trade war has increased the production costs of textiles and apparel 'Made in the USA,' and to cover these costs these brands will have to increase their prices.