Fashion Doesn’t Exist in a Vacuum: Reflections on the 2026 World Economic Forum

by Emilie Delaye

Fashion and apparel aren’t just about fabric or seams. It is not just about the clothes that you put on your body. Don’t believe me? Well, I am going to show you just how interconnected the fashion industry is to everything around us. My hope is to show you just how important it is to understand the world around us, especially in the industry we are all about to enter. This deep connection between fashion and the world around us is exactly why global organizations like the World Economic Forum matter.

For those of you who don’t know, the World Economic Forum (WEF) is an independent international organization headquartered in Geneva, Switzerland, dedicated to improving the state of the world through public-private cooperation. Recently, the WEF held the 56th Annual Meeting of the World Economic Forum, which brings together stakeholders from government, business, civil society, and the scientific and cultural domains to have real conversations, solve problems together, and highlight new innovations.

I had the opportunity to watch three sessions from this year’s World Economic Forum. As noted in my summary below, although these sessions did not specifically mention fashion, their insights are highly relevant to the fashion industry in today’s global economy.

“Geopolitical Risks Outlook for 2026 “

  • Summary: The world is changing in ways that feel both risky and promising. While technology, politics, and globalization are creating instability, investments in green energy are driving growth and new opportunities. How countries respond will shape what comes next.
  • Connection to the Fashion Industry: These global changes directly impact the fashion industry by reshaping how clothes are made, sold, and regulated. AI is changing design, production, and supply chains, while political shifts and new global rules affect sourcing, labor, and trade. At the same time, the push for green energy and sustainability is forcing fashion brands to rethink materials, manufacturing, and long-term social responsibility. As a fashion student, it is critical to understand these changes, as they could shift career paths, redefine job roles, and reshape the industry’s future.

“US and China: Where Will They Land?”

  • Summary: The U.S. and China are locked in a long-term competition over power, technology, and security, and while neither side wants war, the rivalry creates instability and misunderstanding. Without clear guidelines, consistent trade policies, and a shared framework, especially around AI and emerging technologies, managing this relationship remains difficult and uncertain.
  • Connection to the Fashion Industry: This relationship affects the fashion industry through tariffs, trade uncertainty, and supply chain disruptions. This is especially true given China’s major role in global apparel manufacturing. This relationship strain makes it more difficult for fashion brands to plan and source their products. As a student of fashion, the relationship between these two countries is an important matter to consider.

An Honest Conversation on AI and Humanity”

  • Summary: AI is changing from a tool into something that can think, decide, and communicate on its own, challenging human control. This creates urgent questions about how society will manage AI before it reshapes jobs, power, and responsibility on its own.
  • Connection to the Fashion Industry: Specifically, the fashion industry will be dramatically impacted by AI by changing how clothes are designed, produced, and sold, and by reshaping the roles people play within the industry. As fashion students, it is important to understand both the benefits and drawbacks of AI, especially since our generation will likely be responsible for making these decisions.

In the end, clothing is a direct reflection of the world around us. Global politics, technology, and ethical responsibility all influence how fashion is created and consumed. For those entering the fashion industry, understanding these forces is essential, as fashion does not exist in a vacuum; it evolves alongside the world that shapes it.

About the author: Emilie Delaye is a graduate instructor in Fashion and Apparel Studies at the University of Delaware. She is also a member of the 2025-2026 Fair Labor Association (FLA) Student Committee.

[Discussion for this post is closed]

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Author: Sheng Lu

Professor @ University of Delaware

23 thoughts on “Fashion Doesn’t Exist in a Vacuum: Reflections on the 2026 World Economic Forum”

  1. One key concept that I could relate this article back to from class was the concept of comparative advantage. Comparative advantage refers to the concept of countries focusing on the production of goods that they specialize in in one way or another. If a country has more efficient production of a product than another, they are considered specialists in manufacturing that good. The concept of specialization encourages worldwide trade and helps to explain how the fashion industry has become so reliant on global trade networks. The World Economic Forum article details how politics, as well as economic shifts, and sustainability laws impact companies internationally. As aforementioned, comparative advantage aids in our understanding of why countries continue to outsource, even amidst the increasing risks associated, such as unpredictable tariffs. Modern fashion systems will likely remain deeply interwoven with worldwide trade, but this has many risks associated with it, so emphasizing reliability is important when sourcing. Outsourcing to other countries will lower production costs, but overly diversifying can result in a convoluted supply chain. The key is balancing diversified production locations with reliability, lessening risk while maintaining competitiveness in the market.

  2. One key concept from our class that relates to this blog post is interdependent counties. Interdependent countries rely on each other for goods and services which is exactly what the US and China do for each other. The blog mentions how both countries are in competition over power, technology, and security but neither side wants war. In class, we’ve discussed how China and the US rely on one another and how interdependent countries can be a good and bad thing, like getting specialized items, freer movement of goods, and capital. We also discussed tariffs and trade uncertainty and how this might disrupt the relationship the US has with China. In this blog post, we can see that without clear guidelines and consistent trade policies, especially with the rise of AI, the relationship between the US and China is in a state of uncertainty despite them both being interdependent on each other. I am curious if fashion companies plan to source their products elsewhere, or will try to maintain the relationship they have with one another.

  3. One key concept from our class that relates to this blog post is the smiling curve and the new global division of labor. The smiling curve shows that the highest value added activities in a commodity chain, such as research, design, branding, and marketing, are capital and knowledge intensive, while manufacturing tends to generate lower value and is more labor intensive. Globalization has reinforced this structure, with different countries specializing in different stages of the value chain.In this blog post, the discussion of AI, US and China tensions, and geopolitical instability highlights how the high value segments of the fashion industry may shift even more toward technology driven activities. While manufacturing remains concentrated in labor abundant countries, AI is increasingly influencing design, supply chain coordination, and branding strategies. At the same time, geopolitical risk threatens the stability of the global production networks that support this structure. From a managerial perspective, fashion companies must not only diversify sourcing locations but also invest in higher value added capabilities such as digital innovation and brand development. As global competition intensifies, controlling the high value stages of the value chain may become more important than controlling production alone.

  4. One concept that this post connects to is trade theories for international trade. In the WEF, they discuss geopolitical risks in the economy. This is relevant to trade theory as some countries are reevaluating their take on trade theory. For example, the US tariffs push the US economy towards a more mercantilist approach. This economic policy affects both domestic and international economies, discouraging the rest of the world from selling to the US. Part of this political push to mercantilism in the US comes from a reaction to geopolitical relations with countries like China, as well as environmental supply chain issues (ie. Suez Canal, COVID 19). Regardless of the opinions on the US tariffs, I believe we are seeing the result of over-reliance on the international division of trade and on China’s exports. 

    1. Good thought. I was thinking that the increasing involvement of geopolitics makes countries view trade more as a national security issue rather than an economic one. This could fundamentally change the calculation of gains and losses.

  5. One key concept from our class that relates back to this blog post is international trade and how it can be controversial. We learned how higher tariffs can create tension and high costs for both manufacturers and customers. There is trade uncertainty when tariffs rise, and relationships between countries start to unravel. This blog post explains how the relationship between China and the US is unstable for reasons such as a lack of communication and disagreements over trade policies, which is something that can affect trade on a large scale. The recently added tariffs added to this, and now this can affect overall sourcing for companies in and out of the US, which we have been discussing in class.  I think this blog post really showed how international trade is such an important part of the fashion industry. The way people are able to get a majority of clothing products is through trade and good relationships with other countries. I think a question that needs to be asked is if China and the US can’t negotiate a deal that is set in place to put a stop to sourcing delays and trade uncertainty, then is it worth it to look into not relying on them for products any longer? It’s the question of whether the relationship between the two countries can be fixed. Or will this continue to happen as long as we need products from each other, which only puts stress on the supply chain?

  6. One key concept from our class that relates to this blog post is trade theory, specifically international division of labor. This trade theory explains that a product is usually not fully made in one country and trade allows for products to be made all over the world. This integrated system of worldwide production allows for specialization to occur and for products to be made at a lower cost in various locations.

    In class we discussed the importance of specialization when producing products like apparel to allow for trade around the world and producing apparel at a lower cost. This connects to the blog post because it highlights how the U.S. and China are having difficulties with trade and this will greatly affect trade within those two countries in the apparel industry. Since a large part of clothing is made in China, the intense competition and rivalry between both countries could affect companies that source apparel from China and could reduce textile and apparel imports to the United States. The blog post mentions how the emergence of AI can cause problems with inconsistent trade policies and unclear guidelines, which could impact the textile and apparel industry worldwide.

    Going forward, we can further explore which trade regulations can be implemented to strengthen the relationship between the two trade giants. I wonder how trade regulations will be impacted by AI and how it will be restricted in various industries.

  7. After watching sessions from the World Economic Forum, it is clear that fashion is deeply connected to global politics and technology. This connects to in class, when we discussed the connection of tariffs and trade to politics. It can also be related to trade theory and the uncertainty of it all. The discussions on geopolitical risk and U.S.–China tensions show that trade instability and supply chain shifts directly impact how fashion brands source and price products. This supports the idea that fashion does not operate in isolation; it reflects broader economic and political forces.

    Tension between the United States and China centers heavily on trade imbalances, tariffs, and competition in manufacturing and technology. Both countries have imposed tariffs on each other’s goods, raising costs for industries like fashion that rely on global supply chains and Chinese production. This ongoing trade uncertainty makes it harder for companies to plan long-term sourcing strategies and pricing structures.

    Going forward, we can further explore how sustainability, AI, and geopolitics intersect. I am curious whether fashion companies can balance innovation with ethical responsibility, and how they will adapt to an increasingly uncertain global economy.

  8. A specific course concept from our class would be trade theory or international trade, which is the theory that explains why countries trade with other countries to distribute goods and services or textiles and clothing for the fashion industry. This system is in place to help use resources from other countries that may be cheaper or more accessible while also maintaining connections to other countries. This topic relates to this blog post because it highlights the trade between the US and China which has become difficult due to the increasing tariffs and inconsistent trade policies. China has an important role in the garment manufacturing process and the difficulties between the countries make it difficult for the supply chain to function properly. If the relationship were to be disrupted due to politics or tariffs, it would have major consequences for the global supply chain since China needs the money from the US and the US needs the supplies China provides. A question I had for this blog post would be, will AI further help or make difficulties for the fashion industry international trade in the long run? This is an important question to ask because the future of AI will start to take over many businesses and industries and it’s important to be aware of this when looking to the future and how it will impact it.

  9. One key course concept that relates to this article is globalization. Globalization refers to the connection between countries through trade, technology, politics, and cultural exchange. In the fashion industry, globalization shapes how brands source materials, manage their supply chains, respond to global regulations, and reach international markets. The fashion industry is directly related to economic issues and political systems. The article explains this concept well by showing how the discussions at the 2026 World Economic Forum directly impact the fashion industry like geopolitical tensions, tech innovations, and sustainability. For instance, the shifts in U.S. and China relations affect global sourcing strategies and advancements in AI reshaping production and labor. These are decisions fashion brands are currently making that can positively or negatively affect their business with consumers around the world. One policy recommendation I think could be used is for governments and international trade organizations to work towards clearer trade and sustainability regulations for the fashion industry. I understand this is easier said than done, but for the world today, we need to encourage sustainable production practices across global markets.

  10. One key concept from class that relates to this blog post is the comparative advantage trade theory. We learned that countries specialize in producing goods where they have a relatively lower opportunity cost, even if they do not have an absolute advantage. This helps explain why less developed countries can still export apparel, while developed countries like the U.S. focus more on design, branding, and higher value-added activities. In the blog post, the discussion of the U.S. and China’s tensions and tariff uncertainty challenges the smooth functioning of comparative advantage. Even if China maintains efficiency and scale advantages in apparel manufacturing, political decisions such as sudden tariffs disrupt trade flows. This highlights how politics interfere with free trade, and make sourcing decisions much more difficult. Although unlikely, a policy recommendation would be for governments to prioritize greater trade policy transparency and stability. Sudden tariff changes undermine long-term investments and supply chain planning in industries that operate on seasonal calendars. Clear timelines and predictable frameworks would improve economic efficiency while still allowing room for policy adjustments when necessary.

  11. One key concept from our class that relates to this blog post is technology in the apparel industry. Technology, such as AI and digital systems, helps companies improve design, forecasting, and supply chain efficiency. It allows brands to respond faster to trends and manage production more effectively.

    In this blog post, technology and globalization together show how connected the fashion industry is to global changes. AI is expected to transform how apparel is designed and produced, while global political tensions and trade policies can disrupt international sourcing and manufacturing. Because fashion relies on global supply chains, these technological and global changes directly affect how companies operate.

    I am curious if AI will help companies reduce delays and improve supply chain transparency. This could make global sourcing more efficient and help fashion brands manage risks and respond faster to changes in the global market.

  12. One concept that the blog “Fashion Doesn’t Exist in a Vacuum: Reflections on the 2026 World Economic Forum” relates to is international trade theories. One trade theory that this article focuses on is comparative advantage, which is when countries specialize in the production of certain goods. The World Economic Forum is an independent organization that focuses on global, political, and technological changes. The blog shows how the fashion industry is directly affected by these global changes, changing how clothes are made, sold, and regulated. Political changes have changed production and supply chains, changing the way apparel can be produced. Fashion brands have to change where they source from, the materials used, and manufacturing processes. The usage of AI is also taking over jobs and changing the fashion industry as a whole. Countries that were once relied on for certain textiles and apparel production are now facing heavy tariffs, strict regulations, and uncertainty about the impact of AI. 

  13. Taking a further look into the relationship between the U.S. and China can help to better understand trade theory concepts we learn in class, such as Absolute Advantage theory and Comparative Advantage theory. These theories provide insight to understanding the basis of relationships through globalisation and trade. The Absolute Advantage theory coined by Adam Smith states that specialization in trade based on an absolute advantage is most efficient. The Comparative Advantage theory has the same framework, but is based on a relatively bigger or smaller comparative advantage in a specific industry. In this article, these theories can be applied when understanding the relationships between countries such as the U.S. and China. Specifically, in the section “US and China: Where Will They Land?”, it states how the countries are constantly at competition with one another through power, technology, and security. There is much uncertainty and instability in this relationship due to the fact that they have no set clear guidelines and trade policies with the other. If they set guidelines, cooperated together, and agreed on which country has the absolute and/or comparative advantage among different sections of trade, there is potential for both countries to benefit. As a fashion student, I know how big of a role China plays in the supply chain of the Fashion Industry. The current state of our country’s tariffs will significantly impact the fashion industry. I do not think this relationship between China and the U.S. should be overlooked due to the fact that they are both such powerful and influential countries that have the potential to grow even more if they were to find a common ground to work with one another through trade.

  14. One key concept in our class that relates to “Fashion Doesn’t Exist in a Vacuum: Reflections on the 2026 World Economic Forum” post is the trade theory of comparative advantage. In class, we discussed that comparative advantage theory is based on a relatively bigger absolute advantage or a relatively smaller absolute disadvantage. In this blog post, we can see the comparative advantage theory through the U.S. and China’s relationship. As stated, they have been in long-term competition over power, technology, and overall security. With no clear guidelines or trade policies, this relationship leads to uncertainty for both countries. If the countries decided to create a trade policy, it would benefit both countries and make trade easier. I am curious to see if the U.S. and China will create a trade agreement in the future. Additionally, I am curious to see how they will both benefit and grow.

  15. I really liked how this article shows that fashion isn’t just about clothes it’s connected to everything happening in the world. The connection to the World Economic Forum made it clear that global politics, technology, and sustainability directly impact how fashion operates. The part about U.S. China relations stood out to me because trade tensions and tariffs seriously affect sourcing and supply chains, which impacts pricing and planning for brands. That’s something we’ll have to understand as future fashion professionals. I also think the discussion on AI is so relevant. It’s already changing design, forecasting, and marketing, and our generation will be the one navigating those changes. Overall, this article does a great job showing that fashion doesn’t exist in a bubble it evolves with the world around it

  16. One concept from class that really connects to this post is geopolitical risk in global supply chains. We’ve talked about how fashion relies on a super globalized production system, so political tensions, trade wars, or new tariffs can instantly affect where brands source and how much they pay. Because apparel supply chains stretch across multiple countries even small policy shifts can create major disruptions.

    You can see this clearly in the blog’s discussion of the US China relationship. Since China is such a key player in apparel manufacturing, ongoing tension and trade uncertainty make it harder for brands to confidently plan production. The broader “Geopolitical risks” conversation also highlights how global instability forces companies to rethink sourcing, compliance, and long-term strategy.

    For fashion brands, this means diversification is becoming less of a trend and more of a necessity. Relying too heavily on one country is risky. As future professionals in the industry, understanding politics and global economics honestly feels just as important as understanding design or trend forecasting. Fashion might tend to look creative and glamorous, but behind the scenes, it’s deeply tied to global power and policy decisions.

  17. One concept that we talked about in class that relates to this blog is globalization in trading. In class we’ve discussed that globalization refers to the increasing economic, political, and technological connections between countries, where industries like fashion rely on the flow of goods, services, and ideas to function effectively. This idea helps explain why events outside the fashion world, for example AI advancements, still have direct effects on how fashion products are designed, made and sold. 

    This post highlights sessions from the 2026 World Economic Forum and emphasizes that fashion does not exist in isolation but instead it is fundamentally influenced by geopolitical risk, shifts in US and China relations, and technological evolution such as AI adoption across supply chains. Globalization helps interpret these observations because it shows that sourcing decisions, labor practices, and innovation in design aren’t just internal business choices but also reactions to broader world forces shaping the bigger picture. 

    My takeaway from this is that fashion companies should monitor global trends not only in consumer demand but also in political relationships, trade policy and emerging technologies like AI. Leaders who understand these other aspects can better prepare for risks that are bound to happen and opportunities, allowing their firms to adapt proactively rather than reactively in a fast paced environment.

  18. One key concept from class that connects to this post is comparative advantage theory. In class, we learned that countries specialize in producing goods where they have a relatively lower opportunity cost. That’s why developing countries often export labor intensive products like apparel, while developed countries focus on capital and technology intensive industries.

    The blog’s discussion of US and China tensions and geopolitical instability directly ties into this. China’s role in apparel manufacturing reflects its labor and industrial advantages under factor proportions theory, while the US captures more value in branding, retail, and innovation. Which we saw through the smiling curve, where most added value stays in developed countries. If trade relationships become unstable, that entire system of specialization can be messed up.

    From a strategic standpoint, fashion brands need to think beyond just chasing low labor costs. The “new international division of labor” makes supply chains efficient, but also a little vulnerable. Diversifying sourcing and investing in regional production could reduce geopolitical risk. Fashion doesn’t exist in isolation, it’s deeply shaped by trade theory, global power dynamics, and where value is actually created along the chain

  19. One key concept from our class that relates to this blog post is international trade and comparative advantage. In class, we learned that the apparel industry depends on trade because clothing is often designed in one country, produced in another, and sold globally. Comparative advantage explains how countries specialize in producing goods they can make more efficiently, which is why apparel production is more common in certain countries. This makes fashion highly affected by political relationships, trade policies, and economic conditions.

    In this blog post, the ongoing competition between the U.S. and China over power, technology, and security shows how global relationships can disrupt the fashion industry. Since China plays a major role in apparel manufacturing, trade uncertainty and political tensions make it harder for brands to plan production and manage global operations. Without clear and consistent trade policies, companies face instability that can affect costs and production timelines. This highlights how changes in global trade relationships can directly impact where and how apparel is produced.

  20. One concept from our class that I think relates to this post perfectly is Globalization and the New International Division of Labor. In class ands throughout my fashion major, I have constantly learned that globalization isn’t as simple as “just trading clothes”. Rather, it’s the “freer movement of goods, services, capital, and people” driven by technology and lower trade barriers. The New International Division of Labor shows us how a single t-shirt is “made in the world,” with different countries handling design, sourcing, and assembly based on their specific advantages.

    In this blog post, Emilie shows how this system is being shaken up by things like US-China rivalry and AI (also relating to issues we discussed in class like tariffs). For example, because the fashion industry is so globalized, the risks mentioned in the WEF summary aren’t just “politics”, but are direct threats to the supply chains we studied. If the US and China can’t agree on trade rules, the “New International Division of Labor” gets disrupted, making it way harder for brands to know where to source materials or how much they’ll have to pay in tariffs, especially due to the enormous size of the two countries.

    Going forward, I think the biggest takeaway for us as fashion students is that we can’t just look at it as “fashion” anymore. We have to be almost part time political scientists. If AI starts taking over the “middle” parts of the Smiling Curve, like production and basic design, the roles left for humans might shift even further toward high level strategy, which nobody can really predict what the effect of that will be. I’m curious if these tensions will actually kill the idea of a “global” supply chain and force brands to move everything back to local, tech-heavy “micro-factories” to avoid all the drama.

  21. A specific course concept from this class that I believe fits this article is the theory of international trade. This fits the article because it discusses technology, politics, and how globalization can change opportunities in other countries. In addition, the article mentions the comparative advantage, which is a country that has a bigger advantage or a smaller disadvantage. When applying the comparative advantage theory to this blog post, you will understand that the fashion industry heavily relies on China and their acceleration in manufacturing. The article states “This is especially true given China’s major role in global apparel manufacturing”, which helps the reader to understand the major position China plays in manufacturing and how they have a comparative advantage. In my opinion, it is important to do our best to not disrupt the slow fashion supply chain, because I feel that the industry is never prepared for solving this issue that was created due to faster fashion and mass production. Even though China may have the comparative advantage, it is important for retailers in the US to expand their sourcing further than just China. By expanding past China, retailers can lower their risk of extreme tariffs, and be prepared with other solutions. 

  22. One key concept from our class that can relate to this blog post would be textile manufacturing. This blog closely relates to textile manufacturing because trade, economics, technology, and sustainability can help to determine where products and apparel will end up being produced. Moreover, the article discusses how AI and technology are evolving which overtime can reroute where apparel is manufactured and produced. This can potentially disrupt the supply chain due to the uncertainty of AI and how it will actually affect manufacturing and production of textiles and apparel. From my insight, retailers and brands should begin to expand their sourcing strategies to more than one country to prepare for the uncertainty of AI, trades, and economics. Moreover, having an ongoing competition between the US and China can create issues for brands. A question that I would like to ask is how can companies and retailers better prepare for AI coming into the textile industry while also securing human jobs over technology? 

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