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New York’s Garment District Faces Uncertain Future Amid Trump Tariffs
The iconic Garment District in New York City is preparing for significant changes as President Trump’s tariffs start to affect the apparel sector.
Lyn and Lisa Alessi, who co-founded Alessi International, a local fabric importing business that collaborates with mills in Asia and Europe, are particularly concerned. Their company produces fabrics for high-end fashion brands, and they anticipate the tariffs will create substantial hurdles. “All my customers are hitting the brakes, questioning, ‘What’s our next move? How do we navigate this? Where can we shift production?'” Lyn Alessi noted, reflecting on her experience in the luxury fabric market since 1989.
Data from the American Apparel and Footwear Association indicates that a staggering 97% of apparel and footwear sold in the United States is imported, with a large share coming from countries such as China, India, and Vietnam, as reported by the World Bank.
On Thursday, the Trump administration announced that certain Chinese products would face “reciprocal tariffs” as high as 145%, while items imported from Vietnam and India would incur tariffs of 46% and 27%, respectively. Although a 90-day suspension on tariffs has been granted for many countries to facilitate ongoing trade discussions, tariffs on Chinese goods remain unchanged.
These imminent tariffs are driving import taxes to the highest levels seen in over a century, with President Trump promoting this strategy as a means to bolster America’s manufacturing sector.
The Alessi sisters warn that this new financial burden will have a profound effect on all facets of garment production, leading to increased costs for businesses and consumers alike. They predict that higher prices will lead shoppers to explore alternative clothing sources. “A Veronica Beard jacket was $800. With the new pricing, it could reach $1,000, which removes it from everyday consumer reach. The secondhand market is set to flourish,” Lyn Alessi remarked.
Just a short walk from Alessi International is Apparel Production, a manufacturing collective that has weathered economic fluctuations since its inception in 1948. Co-owned by Karen and Teddy Sadaka, the company has partnered with brands like Calvin Klein and Ralph Lauren, yet the majority of its production facilities have been shuttered as jobs moved overseas.
“We used to have factories in states like North Carolina, South Carolina, Tennessee, Alabama, and Kentucky. Those days are gone,” Karen Sadaka lamented. Currently, the average age of workers at Apparel Production is 50, posing a challenge for finding replacements as they retire. While Sadaka is uncertain whether Trump’s tariffs will encourage increased domestic production, she expresses concern that the changes may be occurring too quickly.
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