Industry players have long lobbied for tariffs to reinvigorate the American garment industry and mitigate clothing waste. But some fear the Trump administration’s hawkish trade policy is more of an obstacle than an opportunity for domestic circularity

KEY HIGHLIGHTS FROM PIECE

Tariffs Complicate Circular Supply Chains: The Trump administration’s tariffs disrupted the operations of circular fashion brands, many of which rely on international partners for textile recycling and re-manufacturing—key steps in creating a closed-loop fashion system.

Small Brands Disproportionately Affected: Emerging sustainable labels, which already face logistical and financial hurdles, are especially vulnerable to tariff-related cost increases, limiting their ability to scale and compete with larger brands.

Policy Misalignment with Sustainability Goals: While circular fashion supports long-term environmental goals, U.S. trade policies focused on penalizing imports may inadvertently undermine these efforts by raising the cost and complexity of sustainable production.

“Industry leaders say tariffs alone won’t boost domestic industries — they need positive incentives and infrastructure, too. ‘The circular fashion transition relies on long-term offtake commitments, industrial-scale infrastructure and policy stability…’ says Peter Majeranowski, president of textile recycling company Circ. ‘We’ve intentionally designed our model to be resilient to this kind of volatility by making it strategically global, energy secure and less exposed to short-term trade shocks. But to build a circular economy for fashion at scale, we need more than trade policy. We need real investment in textile recycling infrastructure and a clear industrial strategy that rewards long-term innovation, not just penalises the status quo.‘”

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