What Tariff Hikes Mean for U.S. Fashion Companies’ Apparel Sourcing and Merchandising? An Analysis of the 2026 Earnings Call Transcripts

About the study

The unprecedented tariff hikes and policy uncertainty since President Trump’s second term began in early 2025 have directly and significantly affected U.S. fashion companies’ financial performance and key business operations. Based on a content analysis of 30 leading U.S. fashion companies’ earnings call transcripts from April to June 2026, this study explored the evolving impacts of tariff hikes and policy uncertainty on U.S. fashion companies’ sourcing and merchandising practices.

The results show that the effects of tariffs on U.S. fashion companies have gone far beyond costs, affecting broader sourcing, assortment, and pricing practices. In particular, the uncertainty surrounding tariff policy appears to be even more concerning to U.S. fashion companies than the tariff hikes themselves, as sourcing relies on advance planning. Meanwhile, the findings illustrate that U.S. fashion companies have transitioned from short-term responses to tariff hikes to more medium- to long-term responses.

The study’s findings provide new insights into the apparel-sector-specific effects of tariff policy and offer valuable input that can help fashion companies navigate the evolving sourcing and business landscape.

About the authors

• Hope Gallagher is a 2026 University of Delaware Summer Scholar and graduate student in the Fashion and Apparel Studies 4+1 program.
• Dr. Sheng Lu is a professor and Graduate Director in Fashion and Apparel Studies at the University of Delaware.

Read the publication based on the study: Gallagher, H., & Lu, S. (2026). What Tariff Hikes Mean for U.S. Fashion Companies’ Apparel Sourcing and Merchandising? An Analysis of the 2026 Earnings Call Transcripts. Global Textile Academy, International Trade Centre, Geneva, Switzerland.

The study will be presented at the 2026 University of Delaware Summer Scholar Symposium on August 13, 2026.