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Labour Behind the Label raises concerns for impact US tariffs pose on garment workers
Garment workers in Gazipur, Bangladesch, 2021. Credits: Ahmed Salahuddin//via AFP UK non-profit Labour Behind the Label is raising concerns about the potential negative impact that the recently announced US tariffs are set to have on Asian countries such as Vietnam, Cambodia, and Sri Lanka and their garment workers. The "Liberation Day" tariffs, announced by the US administration last Wednesday, included tariffs on key apparel manufacturing countries - China (34 percent), Vietnam (46 percent), India (27 percent) and Bangladesh (37 percent) - all of which are expected to drive up import costs considerably. With 97 percent of all clothing in the US imported, this could equal consumers paying an additional 7 US dollars for a typical 90 US dollar pair of jeans or sweater. However, in addition to US consumers bearing the brunt of these tariff hikes, garment workers across the aforementioned Asian countries are also expected to be hit. The fashion and footwear industry is facing some of the worst implications following the latest wave of trade restrictions, as many brands and retailers import their products from Southeast Asia's key manufacturing centers. In an effort to reduce reliance on China, many retailers have spent years diversifying their supply chains, turning to countries like Vietnam, Cambodia, and Indonesia. However, with reciprocal tariffs now climbing as high as 42 to 49 percent, the cost benefits that once made these regions appealing are quickly fading. "These tariffs are punitive and will further harm economies already struggling to pay responsible wages and fund social protections for workers who make our clothes," said Anna Bryher, UK policy lead at workers' rights organization Labour Behind the Label, in a statement. "As the status of the global economy remains uncertain and negotiations and retaliations are anticipated, we strongly encourage fashion brands to commit to long-term sourcing agreements with suppliers to help them navigate these circumstances and provide a guaranteed decent wage for workers." In order to help protect garment workers and overseas manufacturers in this shift, Labour Behind the Label adds that brands and retailers should slowly transition any potential shifts in production - ideally over a minimum of nine months—and execute the shift collaboratively with suppliers. Retailers should adhere to a completely responsible exit strategy that carefully evaluates the potential consequences for workers, including wage disruptions, factory shutdown risks, and whether suppliers have the financial capacity to fulfill legally mandated severance payments, adds Bryher. "Fashion brands should proactively join initiatives such as the Severance Guarantee Fund Agreement For Governments — #PayYourWorkers to ensure that workers are protected in the case of factory closures and job losses caused by the kind of market fluctuations we are likely to see from the relocation of production en masse linked to changes in the global economy such as the introduction of these tariffs."
UK non-profit Labour Behind the Label is raising concerns about the potential negative impact that the recently announced US tariffs are set to have on Asian countries such as Vietnam, Cambodia, and Sri Lanka and their garment workers.
The "Liberation Day" tariffs, announced by the US administration last Wednesday, included tariffs on key apparel manufacturing countries - China (34 percent), Vietnam (46 percent), India (27 percent) and Bangladesh (37 percent) - all of which are expected to drive up import costs considerably.
With 97 percent of all clothing in the US imported, this could equal consumers paying an additional 7 US dollars for a typical 90 US dollar pair of jeans or sweater. However, in addition to US consumers bearing the brunt of these tariff hikes, garment workers across the aforementioned Asian countries are also expected to be hit.
The fashion and footwear industry is facing some of the worst implications following the latest wave of trade restrictions, as many brands and retailers import their products from Southeast Asia's key manufacturing centers. In an effort to reduce reliance on China, many retailers have spent years diversifying their supply chains, turning to countries like Vietnam, Cambodia, and Indonesia.
However, with reciprocal tariffs now climbing as high as 42 to 49 percent, the cost benefits that once made these regions appealing are quickly fading. "These tariffs are punitive and will further harm economies already struggling to pay responsible wages and fund social protections for workers who make our clothes," said Anna Bryher, UK policy lead at workers' rights organization Labour Behind the Label, in a statement.
"As the status of the global economy remains uncertain and negotiations and retaliations are anticipated, we strongly encourage fashion brands to commit to long-term sourcing agreements with suppliers to help them navigate these circumstances and provide a guaranteed decent wage for workers."
In order to help protect garment workers and overseas manufacturers in this shift, Labour Behind the Label adds that brands and retailers should slowly transition any potential shifts in production - ideally over a minimum of nine months—and execute the shift collaboratively with suppliers.
Retailers should adhere to a completely responsible exit strategy that carefully evaluates the potential consequences for workers, including wage disruptions, factory shutdown risks, and whether suppliers have the financial capacity to fulfill legally mandated severance payments, adds Bryher.
"Fashion brands should proactively join initiatives such as the Severance Guarantee Fund Agreement For Governments — #PayYourWorkers to ensure that workers are protected in the case of factory closures and job losses caused by the kind of market fluctuations we are likely to see from the relocation of production en masse linked to changes in the global economy such as the introduction of these tariffs."
