The Trump administration’s announcement on April 2 of steep tariffs on US imports from garment-producing countries including Cambodia, Bangladesh, Sri Lanka, Indonesia, Lesotho, and Vietnam has sparked concerns about the potential impact on garment workers. The Clean Clothes Campaign (CCC) has urged US and global brands to absorb the financial burden themselves rather than shifting it onto the most vulnerable in the supply chain low-paid workers.
Many of these workers already survive on below-subsistence wages, with little to no savings. Any attempt to mitigate tariff costs by cutting wages, slashing product prices, increasing unpaid overtime, or relocating production could push workers deeper into debt and food insecurity.
The industry’s key players - Nike (2024 revenue $51.4 billion), Gap ($15.1 billion), PVH/Calvin Klein ($8.7 billion), Levi’s ($6.4 billion), and Victoria’s Secret ($6.2 billion) along with major manufacturers like Sri Lanka’s Mas Holdings (valued at $800 million), are well-positioned to absorb added costs. However, reports suggest that brands like Gap, Walmart, and Levi’s have already begun pressuring suppliers to shoulder the tariff impact, exacerbating the strain on workers.
The CCC warns against repeating the mistakes seen during the Covid-19 crisis, when brands cut costs at the expense of millions of workers. In countries like Sri Lanka, where committees have been formed to negotiate with the US, the absence of union representation is alarming. Worker unions must have a seat at the table, the CCC argues, to ensure their voices are heard in policy discussions and crisis responses.
