Global trade has always played a pivotal role in shaping the uniform manufacturing industry. However, recent announcements from the US Federal Government relating to international trade policies and the introduction of new, incremental global tariffs, ranging from 10% to 54%, present significant challenges for businesses across virtually all sectors, including Affinity. The newly introduced tariffs will take effect from April 9th.
At Affinity, a leader in tailored uniform solutions and part of Mi Hub's global network, we understand the complexity and concern that these events have presented, and we want to provide clarity on these changes while outlining our continued commitment to our customers.
What is a Tariff?
Tariffs are imposed duties between countries on imported goods. Tariffs are determined externally by governments and regulatory bodies to balance international trade. While these tariffs are entirely beyond Affinity's control, we believe in full transparency regarding their potential impact on our industry and your business.
The Impact of Global Tariffs on Uniform Manufacturing
The uniform manufacturing industry depends on a complex global supply chain: from sourcing materials to ensuring timely delivery, every product depends on international collaboration. Tariffs can directly affect production costs and imports, disrupt supply chains, and introduce unpredictability when unexpected changes occur.
Tariffs vary by country, and for several decades apparel manufacturer has been predominantly sourced via Asian countries in particular. While historically the average tariff rate was approximately 15%, the recent changes instigated will see a significant incremental increase over this level, with the examples below being provided to show the increase in rate % (and therefore product cost) that we will soon be presented with:
- China 54%
- Madagascar 47%
- Vietnam 46%
- Bangladesh 37%
- Indonesia 32%
While tariffs present challenges to the industry as a whole, Affinity stands out as a stable and resilient brand as part of the Mi Hub group. Unlike competitors that are purely US-based and heavily impacted by these developments, the majority of Mi Hub’s business, around 80%, is European-based and remains unaffected by these changes. This strong European foundation allows us to offer continued stability and reliability, ensuring near seamless service and quality for our customers worldwide.
What you can expect from Affinity
We understand that tariff-related costs may be a concern. Affinity is currently conducting a comprehensive and thorough analysis of our sourcing routes to evaluate the full impact on your program. Our promise to you, as our valued customer, is that we will do our utmost to mitigate any tariff-related increases while keeping you as formally informed as possible on any changes. This approach reflects our commitment to ethical business practices and customer trust.
Strength in Sourcing and Our Global Footprint
At Affinity, our strength is rooted in our extensive global footprint, supported by over 40 manufacturing partners worldwide. This robust network equips us with the flexibility to adapt to evolving trade environments and deliver consistent solutions to our clients.
Nearshoring opportunities in Mexico, Central America and domestically are also on the rise. While these regions offer proximity benefits, capacity constraints and the complexities of country-of-origin documentation where fabric is itself made elsewhere before being imported into nearshore manufacturing locations, along with the expertise required for certain aspects of specialist manufacturing, present additional considerations for brands navigating these shifts. Despite these limitations, Affinity remains well-positioned to leverage strategic sourcing options, ensuring our ability to consistently provide high-quality, reliable uniform solutions to clients across the globe.
Confidence in Challenging Times
While global tariffs continue to evolve, one aspect remains certain - Affinity’s resilience and commitment to supporting your business. Navigating the complexities of international trade demands an experienced partner, and Affinity, backed by Mi Hub’s global reach, is here to provide solutions that support your business both today and in the future.
By leveraging our expertise in managing international trade challenges, Affinity remains committed to keeping you informed throughout this period of uncertainty. Our goal is to offer clarity, support, and confidence, ensuring we move forward together successfully.
Thank you for your continued partnership with Affinity.
