Dr. Christian Schindler, Director General
Dr. Olivier Zieschank, Director
International Textile Manufacturers Federation (ITMF)
1) Business situation continues to slowly decline
The 33rd ITMF Global Textile Industry Survey (GTIS), conducted in the second half of July 2025, revealed a global business sentiment balance of -22 percentage points (pp), marking a six-month decline since January 2025 but an improvement from the previous minimum of -46 pp in November 2023.
As can be seen in Graph 1, on a global level the slow but steady recovery of the business situation in 2024 – from -46pp in November 2023 to -17pp in November 2024 – was interrupted in 2025. The balance remains around -20pp. It is very likely that this is a result of the US-trade policy that was implemented in the last 7 months. As can be seen below in the section about concerns, tariffs are an important concern to the survey participants.
While for most countries the negotiated US-tariffs were settled below the formerly announced ones, it is a fact that average US import tariffs have increased significantly. Alone the baseline tariff of 10% for all products from all countries signalled that imported goods into the USA would become more expensive. Very important trading partners of the USA are still waiting for a final trade agreement (e.g., Canada, China, and Mexico). It is safe to assume that these agreements will not look much different from the other ones given the fact that the USA have a big trade deficit with these countries as well.
The importance of trade deficit for the US-administration can be illustrated by the case of Switzerland. In 2024, the country exported approx. CHF 53 billion to and imported around CHF 14 billion from the USA resulting in a trade surplus of approx. CHF 39 billion. Of course, when it comes to services, Switzerland -like most other countries- have a significant deficit with the USA. But a certain reindustrialization of the USA seems to be the key objective for US-President Trump. Whether and to what extent this will happen, remains to be seen. It is unlikely, though, that apparel production will return to the USA in any significant volume. Nonetheless, high value technical textiles and nonwovens are likely to continue growing in the USA.
Globally, the impact of the new US-tariffs on textile products remains to be seen. The pressure on suppliers to the US will remain high to partially absorb the higher US-tariffs negotiated and/or announced. In a situation where the global textile and apparel industry is struggling with weak demand, higher costs, and a lack of workers/talents it is difficult to imagine how the industry can cope with such pressure. Given that profit margins are very small already, it is more likely that US-import prices will jump at a higher level and that eventually prices/inflation in the USA will start rising. To what extent remains, once again, to be seen. Today the risk for stagflation in the USA is certainly higher that it was at the beginning of the year.
As per the regional business situation, Africa led in July with the highest business sentiment balance at +17 pp, followed by South America at +10 pp (see Graph 2). In contrast, Asia faced challenges, with South Asia at -20 pp, South-East Asia at -25 pp and East-Asia at -50 pp. Europe and North America struggle with a -39 pp and -48 pp.
Across the segments, brands and retailers reported an improved balance of +/-0pp, while garment producers reported a -13pp balance and knitters and weavers stood at -15pp (see Graph 3). Fiber and finished fabrics producers both experienced a -28pp balance. Textile chemicals producers and spinners each faced a -38pp balance, home textiles producers were at -47pp, technical textiles producers at -55pp, and textile machinery producers endured the lowest balance at -66pp.
2) Business expectations remain positive but are declining
Globally, 34% of participants anticipate a more favourable business situation in six months, while 14% expect a less favourable outlook (see Graph 1 and 2). This resulted in a balance of +20 percentage points (pp), which has been declining for six months since January 2025 (+29pp). This level is still much higher than its low of -10pp in November 2022.
On global average, companies of the textile value chain remain optimistic about the future. Despite the major setback in the form of new US-tariffs, companies are of the opinion that business will be better in six months’ time. A widespread view across all regions and segments is that predictability and reduced uncertainty are important. The trade disputes between the US and its trading partners, which started in April with the announcement of major tariff increases which were eventually paused and then negotiated until August, created a wait-and-see situation. Many businesses postponed a large part of their investment decisions. Especially, textile machinery companies are suffering from this uncertainty as textile companies were – and still are – holding back investment decisions until they have more clarity about the implications of the new trade environment.
Regionally, Africa and North & Central America lead with balances of +50pp and +37pp (see Graph 3). South America follows with +20 pp and +Europe (including Türkiye and Central Asia), reported a balance at +19pp. In Asia, South Asia and South-East Asia are optimistic about the future with +18pp and +13pp balances, respectively, while East Asia expects stronger challenges with a negative balance of -15pp.
Among segments, brands and retailer exhibit the highest balance at +45pp, followed by home textiles producers with +29 pp and finished fabrics producers, including dyed and printed, at +28pp. Textile chemical producers, including dyes and auxiliaries, register the lowest balance at -14pp. Other notable segments include spinners with a +23pp balance and textile machinery producers at +17pp, indicating varied expectations across the textile value chain.
3) Major concerns – demand, geopolitics, and tariffs
The 33rd ITMF Global Textile Industry Survey (GTIS) reveals that 62% of participants globally identify weak demand as their primary challenge for the next six months (see Graph 1 and 2), marking a slight increase from May 2025 (61%) and significantly higher than in January 2022 when only 17% were concerned about demand. The industry outlook reflects varying demand pressures across regions and value chain segments.
As a distant second, geopolitics remain a main concern in July with 39% (slightly up from 38% in May) of participants expressing their worry about how conflicts around the world are negatively impacting business and consumer confidence.
For 37% of survey participants tariffs are another major concern. One might have expected that tariffs would be an even bigger concern. While higher US tariffs are of course a burden for companies exporting to the USA, uncertainty about the future tariff landscape is even worse as it makes investment decisions practically impossible.
It is interesting to note that the lack of talent/workers (25%) is a relatively big concern alongside high energy prices (25%) and high raw material prices (24%). For the textile value chain, it has become more difficult in recent years to find talents and workers in practically all textile and apparel producing countries. This increases the pressure for companies to consider more investments in automation.
Inflation was a major concern in 2023 and 2024 with a peak of 48% in May 2023. Since then, inflation as a concern has subsided to now only 12%. Interest rates were only a minor concern (7%) in the current business environment. With investments decisions on hold the need to secure financing and hence the costs for capital are currently not relevant. Of course, this could change, once more clarity about tariffs is available and investments are making sense.
