What: AAFA summit highlights fashion industry's dual challenge of navigating unpredictable tariff policies while accelerating sustainability initiatives amid stricter regulations.

Why it is important: With BCG projecting $640 billion in additional US import costs and up to 75% of fashion businesses at risk from sustainability non-compliance, the industry faces unprecedented pressure to transform operations.

The American Apparel and Footwear Association's executive summit reveals an industry grappling with rapid policy changes in both trade and sustainability. AAFA President Stephen Lamar characterizes current tariff policy as "curve on top of curve," emphasising the need to reframe discussions toward smart sourcing and responsible manufacturing. California's SB707 EPR program exemplifies new regulations pushing companies to rethink their approach to textile waste and product lifecycle management. Industry leaders like Tapestry CEO Joanne Crevoiserat acknowledge this transformative period, noting that selling change is fundamental to the industry's future. The summit highlighted how companies must adapt while consumer preferences shift away from traditional apparel spending toward experiences and sustainable options.

IADS Notes: BCG's March projection of $640 billion in additional US import costs has prompted the implementation of "Trump Majeure" clauses across the industry. February's EU mandate for retailer-funded textile waste management threatens the survival of up to 75% of fashion businesses within five years. However, opportunities exist in innovation, with next-gen materials expected to reach 8% of the fiber market by 2030 and potentially reduce costs by 4%. Consumer behavior supports this transformation, with 41% choosing repairs over replacement and 24% actively purchasing secondhand items.

How fashion leaders are thinking about tariffs, textile sustainability