In the statement IAF made on LinkedIn, the IAF welcomes the decision to pause a large portion of the tariffs but warns that the uncertainty created by these measures remains. “Global supply chains are still recovering from the pandemic, the Red Sea crisis, and declining consumer confidence. The unpredictable nature of trade policy discourages investment, further destabilizes the market, and prevents confidence from recovering.”
Monitor your supplier – Now more than ever
The import tariffs—paused or not—are disrupting the supply chain in the fashion industry. This means that companies in apparel-producing countries are suddenly facing significant declines in demand. Many businesses from Asia, particularly China, are now focusing heavily on the European market, but these tariffs could still lead to financial distress.
It is therefore crucial to closely monitor how this affects your manufacturer. Watch for warning signs such as changes in payment terms, sudden requests for advance payments, unexpected production delays, or, conversely, a complete lack of communication—leaving you in the dark about whether your order will be delivered on time, or at all.
Advance payments
The risk increases when you’re also required to make an advance payment to your supplier. If your manufacturer ultimately fails to deliver, not only will you have to explain the situation to your customer, but you’ll also have lost your money. To address this, the MODINT Sector Policy credit insurance offers a solution that allows you to insure your advance payments. If you have any questions, please contact one of our advisors at +31 88 5054700 or email info@modintcredit.com.
