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War and tariffs trigger historic shock in $82 bn US apparel sourcing

17 Mar '26

7 min read

War and tariffs trigger historic shock in $82 bn US apparel sourcing

Pic: Shutterstock

Insights

War-driven disruptions in the Strait of Hormuz is triggering the most severe supply chain shock for the $82 billion US apparel import market since the pandemic.
Rising oil, freight surcharges and polyester costs are embedding an estimated $*** 'war tax' into garments.
While Bangladesh faces acute disruption and stranded cargo, Vietnam and nearshore suppliers are gaining sourcing advantage.

The US apparel import market—already compressed to $**.** billion in **** from its $*** billion peak in ****—is now absorbing the most severe logistics and energy shock since the pandemic. Sixteen days into the US-Israel-Iran war, the Strait of Hormuz remains effectively closed to commercial shipping, the Red Sea corridor has been shut down by resumed Houthi attacks, and Brent crude has breached $*** per barrel for the first time since ****. For an industry where more than ** per cent of clothing sold in America is imported, and where tariffs had already driven China’s share from **.* per cent to **.* per cent in four years, this war-driven supply chain rupture arrives at the worst possible moment.

Container freight rates from Asia have surged **–** per cent since February **, emergency war surcharges of $***–$*,*** per container are being levied by all major carriers, and polyester fibre costs are climbing **–** per cent as the petrochemical chain absorbs crude price shocks.