**Washington, D.C.:** Executives at the AAFA Executive Summit debated the effects of Trump’s tariffs on the apparel and footwear sectors, emphasising confusion and economic realities, while calling for resilience and adaptability in an evolving trade landscape that poses challenges for businesses.
During this week’s American Apparel & Footwear Association (AAFA) Executive Summit, held in Washington, D.C., the ongoing discussion around “Trump’s tariffs” was a significant focal point among apparel and footwear executives. The summit commenced with a speech by AAFA president and chief executive officer Steve Lamar, who underscored the confusion caused by the current tariff policies and their impact on the industry.
Lamar articulated the challenges faced by businesses due to the “chaos, the uncertainty and the whiplash” surrounding tariffs, stating, “We’ve all had these conversations about how… it is impossible to plan and execute with any level of confidence.” He suggested an alternative approach, proposing that the focus could shift from confusion to fostering negotiated outcomes which would promote smart sourcing and responsible manufacturing practices.
Despite acknowledging potential upsides of tariffs, such as bolstering domestic manufacturing, Lamar reiterated that tariffs are essentially taxes imposed on U.S. importers, costs that are historically passed on to consumers. He expressed the need to remind policymakers about this economic reality, saying, “To be clear, we cannot shy away from reminding policymakers that tariffs are taxes that are paid by the U.S. importer.”
The discussion comes in the context of an evolving landscape in tariffs, with President Donald Trump recently deferring duties on certain goods imported from Mexico and Canada as part of the U.S.-Mexico-Canada Agreement, effective until April 2. This period of uncertainty has left many in the apparel and footwear sectors grappling with the implications for their businesses.
In a keynote address, Tapestry Inc. CEO Joanne Crevoiserat articulated the need for fashion companies to adapt to rapidly changing circumstances within the industry. She stated, “What I’m talking about is playing offense in a landscape that is constantly changing,” highlighting the importance of providing clear direction for teams to navigate the complexities of the market.
Crevoiserat noted that Tapestry is undergoing its own transformation, grappling with challenges such as a substantial acquisition attempt and evolving consumer behaviour amidst trade tensions. She expressed uncertainty about the future of tariffs, stating, “I don’t know where tariffs are going tomorrow… Diversification in this environment is your friend.”
To address these challenges, the Tapestry CEO emphasised the need for resilience in the supply chain, claiming that building robust strategic partnerships is as critical as ensuring efficiency in operations. “Resilience and agility is equally important,” she said, reflecting a shift in focus for many businesses that have traditionally prioritised efficiency.
Lamar concluded by advising attendees to approach the current trade policy landscape with caution, urging them to refrain from making “rash irreversible decisions” about their supply chains until clearer policies emerge. He encouraged effective communication with Congress and administration officials to voice concerns in a proactive manner. “These partners… are the ones that you’re going to be on this journey with,” he noted, highlighting the importance of collaboration amidst uncertainty.
Source: Noah Wire Services
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