, /PRNewswire/ – The next increase in the cost of living may show up not at the gas pump or the grocery store, but in Americans’ closets — unless global apparel supply chains continue to adapt.

A new report from the Gold Institute for International Strategy finds that U.S. trade policy and political uncertainty in major manufacturing countries are reshaping how clothing is made and sourced. Decisions being taken now, the report argues, will help determine whether these shifts translate into higher prices for consumers or into more stable, resilient supply chains.

The report, Turning Tariffs into Opportunity: How the Global South Can Reshape U.S. Textile Supply Chains, finds that tariffs introduced since 2025 have pushed U.S. duties on apparel to their highest effective levels in more than a century. It cites expert projections that recent tariff packages could raise apparel prices by as much as 38 percent in the short term, with clothing costs remaining roughly 17 percent higher over the long run if supply chains do not adjust.

Rather than treating tariffs as a temporary disruption, the report frames them as a durable feature of global politics. The central question, it argues, is whether trade policy is paired with smarter supply-chain design — or allowed to push rising costs directly onto consumers.

In response, the report identifies a shift toward a more distributed manufacturing model across the Global South, with Bangladesh, Kenya, and Peru emerging as complementary production hubs. Together, they offer scale in South Asia, renewable-powered manufacturing and preferential U.S. access in East Africa, and near-shore certainty in the Western Hemisphere — allowing brands to reduce over-reliance on any single country while maintaining speed, compliance, and cost control.

In Bangladesh, the report notes that upcoming national elections in February 2026 and the country’s transition out of least-developed-country (LDC) status are sharpening the focus on policy continuity and predictability as global sourcing and investment decisions adjust. Recent U.S. trade discussions, including proposals around tariff relief and input-linked preferential access, reflect growing efforts to align trade policy with supply-chain realities.

More broadly, large-scale industrial developments across the region show how manufacturers are investing in resilience and cost stability. Export-oriented hubs such as the Korean Export Processing Zone (KEPZ), developed by Youngone Corporation, illustrate how renewable energy, advanced water management, and worker-focused infrastructure are being built into next-generation manufacturing models.

The report concludes that decisions made in 2026 — by policymakers, companies, and regulators — will help determine whether trade pressures drive higher prices for American families or accelerate the shift toward a more resilient global supply system that keeps clothing affordable.

About the Gold Institute for International Strategy

The Gold Institute for International Strategy is a Washington, D.C.–based policy institute focused on global security, trade, and economic resilience. It provides research and analysis on the geopolitical and economic forces shaping global markets.

Its latest report, Turning Tariffs into Opportunity: How the Global South Can Reshape U.S. Textile Supply Chains, examines how tariffs, elections, and industrial reform are reshaping apparel sourcing, with direct implications for U.S. consumers, businesses, and economic policy.

The full report can be found here: https://www.goldiis.org/textile-supply-chain-tariffs-global-south-report/

SOURCE The Gold Institute for International Strategy