Asia Fashion Weekly News Bulletin – ISSUE 11 Week of 21 April 2025
(1) Textile giant Bangladesh pushed to recycle more waste
Bangladesh’s textile industry, facing pressure to improve sustainability, must enhance its recycling capabilities to manage the significant waste it generates, as only a small percentage is currently recycled, with most either exported or left to pollute the environment.
(2) Hermès preps to raise US prices in response to tariffs
Hermès plans to raise prices in the US starting 1 May 2025 to offset a new 10% tariff on EU imports and will not increase prices in other regions.
(3) Chinese garment factories that supply Shein shut down amid Trump tariffs: ‘There are only risks to doing business with the US now’
Dozens of garment factories in China’s “Shein Village” have shut down due to new tariffs imposed by the Trump administration.
(4) The International Apparel Federation warns US tariffs threaten global fashion, textile industry
The International Apparel Federation warns that Trump’s high tariffs threaten the global fashion and textile industries.
(1) Textile giant Bangladesh pushed to recycle more waste
(Photo Credit: Yahoo!news/ Reuters)
Bangladesh’s textile sector, the world’s second-largest apparel producer, faces significant challenges in managing the vast amount of waste it generates, recycling only a small fraction while the rest contributes to pollution. The European Union’s new Ecodesign for Sustainable Products regulation is pushing for reduced environmental impact, which will require improvements in both recycling processes and working conditions in the largely informal sector.
Currently, Bangladesh produces around 577,000 metric tons of textile waste annually, most of which is either exported or left to pollute the environment. The waste that is processed primarily goes to informal workshops where thousands of workers, mostly women, sort through it for minimal pay and without proper safety measures. A small portion is sent to local recycling factories, while a significant amount is shipped abroad for recycling, with some of the materials eventually returning to Bangladesh as new fibres.
Some Bangladeshi companies are striving to improve recycling standards and working conditions. However, for Bangladesh to effectively scale up its recycling efforts, there needs to be greater investment in technology and collaboration among brands, suppliers, and recyclers, alongside a clearer and more transparent waste management system.
News Source: https://www.yahoo.com/news/analysis-textile-giant-bangladesh-pushed-130304562.html
(2) Hermès preps to raise US prices in response to tariffs
(Photo Credit: Georgios Kefalas/Keystone via AP)
Hermès is set to raise its prices in the US starting 1 May 2025 to counteract the impact of a new 10% tariff on imports from the European Union. The luxury brand’s decision was announced during an earnings call, where Eric du Halgouët, the executive vice president of finance, explained that the price increase is necessary to offset the additional costs associated with the tariff. Hermès will not implement price hikes in any other regions.
The company had previously indicated its intention to raise prices in response to tariffs during its earnings call in February, with Executive Chairman Axel Dumas expressing confidence in American customers’ loyalty despite the increases. Consumer loyalty is considered a crucial aspect of Hermès’ strategy, particularly in the current uncertain economic climate.
Hermès manufactures about 75% of its products in France and sells globally, with the upcoming price adjustments affecting all its business lines. The specific changes to prices are still being finalised, as the exact tariff levels have yet to be confirmed. Du Halgouët emphasised the importance of being cautious, given the significant impact such announcements can have on financial markets and currency values.
News Source: https://www.supplychaindive.com/news/hermes-raises-prices-tariffs-q1-earnings/745764/
(3) Chinese garment factories that supply Shein shut down amid Trump tariffs: ‘There are only risks to doing business with the US now’
(Photo Credit: Reuters)
Dozens of garment factories in southern China’s “Shein Village” have recently shut down due to the Trump administration’s new tariffs and the removal of the “de minimis” exemption, which previously allowed online retailers to sell low-cost goods to American consumers without import duties. The policy change, effective 2 May 2025, means that all shipments now face tariffs, significantly impacting the business model of fast-fashion brands like Shein.
In response to the trade war, Shein has encouraged its suppliers to relocate operations to Vietnam to mitigate the effects of the tariffs. However, many smaller suppliers lack the resources to move and have instead closed their businesses.
The overall situation is grim for manufacturers in the region, with reports of declining business even before the tariff changes. One factory in Dongguan lost significant contracts from US clients, leading its new owner, Liu Xiaodong, to abandon hopes of securing new American business. Despite the challenges, Liu plans to shift focus to Asian markets, which offer quicker and more affordable shipping options, as the impact of the tariffs begins to take hold.
News Source: https://nypost.com/2025/04/21/business/china-garment-factories-that-supply-shein-shut-down-amid-trump-tariffs/
(4) The International Apparel Federation warns US tariffs threaten global fashion, textile industry
(Photo Credit: Mara Fribus/ Shutterstock/ Yahoo!finance)
The International Apparel Federation (IAF) has warned that the high tariffs imposed by the Trump administration pose a direct threat to the global fashion and textile industries, which are highly interconnected and foundational to industrial development worldwide. While the IAF supports the recent 90-day suspension of tariffs for all nations except China, it expresses concern over the significant tariffs set for countries heavily reliant on garment exports to the US, which could destabilise economies and threaten jobs within the sector.
Under the new tariff regime, countries like the European Union, India, Thailand, Cambodia, and Bangladesh will face substantial increases in duties on their exports to the US once the suspension ends. For example, Cambodian goods will see a 49% tariff hike, while Indian exports will face a 26% increase. In contrast, tariffs on Chinese exports remain at a staggering 145%, following reciprocal tariffs imposed by China on US goods.
The IAF emphasises that extensive tariff impositions undermine supply chain resilience and urges the industry to build sustainable supply chains based on long-term partnerships rather than volatile trade policies. The federation calls for future trade negotiations to establish reasonable goals and avoid punitive tariffs, arguing that such measures are unrealistic given the limited purchasing power of many apparel-exporting countries, which cannot significantly increase imports from the US.
News Source: https://finance.yahoo.com/news/iaf-warns-us-tariffs-threaten-102302618.html
