What's Happening?
A report by the Business & Human Rights Resource Centre highlights the adverse effects of US tariffs introduced in 2025 on garment workers. The report indicates that apparel brands, in response to tariff-related cost pressures, rapidly changed sourcing
locations, adjusted order volumes, and pushed suppliers for lower prices. This financial strain was passed down the supply chain, leading to factory closures, layoffs, reduced hours, wage cuts, and delayed payments for workers in major garment-producing countries. Women and migrant workers were particularly vulnerable, facing food insecurity, loss of access to medicine, and increased risks of trafficking. The report also notes that suppliers in countries like Bangladesh, Cambodia, Lesotho, Sri Lanka, and India reported order delays, pauses, or cancellations as buyers reassessed sourcing strategies. The Business & Human Rights Resource Centre contacted the top 25 fashion companies importing into the US to inquire about their tariff-related sourcing changes, but none responded.
Why It's Important?
The report underscores the significant impact of trade policies on vulnerable workers in the global supply chain. The rapid changes in sourcing and the financial pressures exerted by apparel brands have led to severe human rights risks for garment workers. This situation highlights the need for responsible purchasing practices and transparency in supply chain management. The lack of response from major fashion companies raises concerns about their commitment to human rights due diligence. The findings reflect a pattern seen in previous supply chain shocks, such as during the COVID-19 pandemic, where the costs of crises are often pushed down onto suppliers, with detrimental consequences for workers.
