"Tariff Turmoil: Will Fashion Brands Step Up or Will They Step on Workers?", 25 April 2025

Whether or not there are further tariff increases on apparel and footwear beyond the additional 10% across-the-board rate and the 145% rate on China currently in effect, a vital question for garment workers is whether international brands will act responsibly or push the cost of higher tariffs onto the shoulders of suppliers and workers, who are unable to bear it.  

Decades of downward price pressure from brands have left factory owners operating on razor-thin margins and have kept wages so low that workers can barely feed their families... Global brands and retailers with billions of dollars in profits have the wherewithal to absorb the financial impact of new tariffs; factory owners operating on 2% profit margins and garment workers earning a dollar an hour do not. 

If brands and retailers demand retroactive ‘discounts’ from suppliers, delay payments for goods beyond agreed timeframes, or make unreasonable price demands on new orders, it is workers who will suffer. Wages will go unpaid, working conditions will deteriorate, misery will prevail...

In the early weeks of the Covid-19 pandemic, many brands and retailers took advantage of the crisis by refusing to pay for clothing they had already purchased—leaving factories and their workers holding the bag. When this grossly unethical behavior came to light...many of the brands and retailers changed course...and agreed to pay in full for orders...

In the weeks and months ahead, brands and retailers should: 

1. Accept delivery, and pay in full for all goods they have already ordered, consistent with terms agreed when the order was placed. If suppliers are asked to delay shipment, orders should be paid in the timeframe originally agreed and all storage costs covered. 
2. When placing new orders, refrain from proposing, demanding, or accepting prices below those paid for like product the prior season and/or more onerous payment terms. 
3. If brands shift production between countries, ensure that workers at factories they exit are paid legally owed dues, including wages, severance, and other terminal compensation and benefits in full. If layoffs or factory closures occur, ensure that unionized workers and workplaces are not disproportionately targeted.  

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