New US tariffs impact on knitwear production

On April 2, 2025, President Trump announced tariffs that will significantly impact the knitwear industry. These tariffs will increase costs for consumers purchasing cashmere, merino wool, and other knitwear products in the U.S.

The global fashion industry was left stunned on Wednesday after US President Donald Trump announced the highest and most comprehensive tariffs in nearly a century, with the most severe levies reserved for some of the biggest apparel manufacturing hubs.

In an address from the White House rose garden, Trump announced a baseline tariff of 10% on all imported goods. However, tariffs were set significantly higher on roughly two dozen countries where the US runs a trade deficit, with many of the fashion industry’s biggest production centers among them.

The new duties, which follow Trump’s previous tariffs on goods from China, Mexico and Canada, are set to raise costs and cause turmoil for countless fashion businesses. The US is one of the world’s largest consumers of apparel and footwear, making it a vitally important market for both American and international companies.

Many brands and retailers, meanwhile, will have to choose between absorbing the costs in order to hold prices steady or passing them onto customers via price hikes at a moment when many are already weary from inflation and minding their budgets.

Here's how these changes will affect prices and why now might be the best time to stock up on knitwear and even thinking ahead for holiday gifting:

Impact on Cashmere & Merino Wool Tariffs

The tariffs impose higher rates on knitwear imports from countries, and most of cashmere and high-end knitwear is from Italy (20%), Madagascar (47%), China (54%), and Inner Mongolia (54%). For example:

• Loro Piana Cashmere Sweater: Currently priced at $1,900, this could increase by 20% to $2,280.

• Arket Merino Wool Polo: Currently priced at $75, this could increase by 54% to $115.

• Paloma Wool Cotton Knit: Currently priced at $242, this could increase by 20% to around $290.

Tariff Impact on Ply-Knits Prices

• Ply-Knits Imogene Cotton Cashmere Knit: Currently priced at $198, this could increase by 54% to $304.

• Ply-Knits Hathaway Merino Cardigan: Currently priced at $288, this could increase by 54% to $443.

• Ply-Knits Iris Cashmere Silk Cardigan: Currently priced at $335, this could increase by 54% to $515.

  
  

Consumer Implications

These tariffs will lead to higher prices across the knitwear market. Consumers should consider purchasing now to avoid future price hikes. The tariffs will not only increase costs but also potentially reduce demand as consumers seek more affordable alternatives.

Reshoring knitwear, especially cashmere and merino to the USA will be slow and unlikely in the next few years, due to large scale infrastructural and labor challenges. Knitwear production is complex and requires 29 steps, for instance, compared to 2 steps for T-shirts.

Brands that currently do manufacture cashmere within the USA such as The Elder Statesmen and The Row have a starting price tag of $1,500.

In light of these upcoming tariffs, consumers interested in luxury knitwear should stock up now to avoid future price increases. The tariffs will significantly impact the knitwear supply chain, leading to higher costs and potentially altering consumer behavior. Shopping during travels to Europe or Asia, perhaps, can offer reprieve from tariffs.

Key Takeaways for Consumers:

• Higher Prices: Expect increased prices for all cashmere and merino wool products due to tariffs.

• Supply Chain Disruptions: International sourcing will become more expensive, affecting product availability.

• Stock Up Now: Purchasing knitwear before the tariffs take full effect could save consumers money in the long run.

Hope you enjoyed this article! Here at Knit-Lab Peru we are committed to offer premium quality products that combine modern technology with ancestral tradition. Contact us if you want to learn more or work with us.