In Newark, New Jersey, President's initiative to boost American-made products is encouraging some U.S. clothing retailers to increase domestic production of items ranging from T-shirts to coats and suits, according to several executives who spoke with Reuters.
However, due to limited capacity, making a significant shift towards U.S. production seems improbable, with American-made clothing costing more due to higher labor expenses and tariffs on materials, as noted by the executives.
During a meeting with American CEOs, the President discussed reducing the corporate tax rate for companies manufacturing in the U.S. to 15%, as reported by a source familiar with the discussion along with support for import taxes.
Mitch Gambert, owner and CEO of Gambert Shirtmakers, mentioned a surge in interest from U.S. retail brands seeking to bring production back to the U.S., citing Nordstrom's request to expand production at his company to meet the rising demand.
As retailers like Reformation adjust to Trump's tariffs, Kathleen Talbot, Vice President of Operations, is increasing orders with suppliers in Los Angeles and considering other states like New York and Nevada, emphasizing the need for time to revitalize domestic manufacturing.
Joe Ferrara, CEO of Ferrara Manufacturing, shared an increase in requests from retailers for small-batch manufacturing, echoing a slight rise in U.S. manufacturing predicted by the American Apparel and Footwear Association.
Amidst the predominance of imported clothing in the U.S., some manufacturers foresee challenges in substantially bringing back jobs to the U.S. due to labor competitiveness and infrastructure limitations.
While facing increased material costs due to tariffs, factory owners like Gambert and Zar are cautiously optimistic about potential business growth while addressing challenges related to production capacity and costs.
Tariff uncertainties and shifting supply chains are impacting the textile industry, prompting calls for long-term clarity to support domestic manufacturers' growth and investments.