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Comment: Sourcing enters a risk era

16 Dec '25
2 min read
Comment: Sourcing enters a risk era
AI-generated image using OpenAI's DALL·E via ChatGPT

Insights

  • Mexico's decision to impose tariffs on textiles from non-FTA countries and the EU's regulatory tightening signal a sourcing reset.
  • Risk, traceability, and circularity now rival cost in importance.
  • Brands must shift to diversified routes, flexible volumes, and fibre strategies that meet legal, environmental, and reputational demands, reshaping sourcing priorities.

Mexico’s decision to impose tariffs of up to ** per cent on textiles and apparel from several Asian nations, effective ****, marks a decisive shift: trade policy, rather than unit cost, is setting the sourcing agenda. The measure, covering key suppliers including China, India and South Korea, is expected to raise billions and signals a reset, not a safeguard.

For flows into Europe, this coincides with a tightening regulatory environment. The EU forced labour regulation moves into enforcement, with member states due to designate authorities by mid-December while producer-responsibility schemes multiply. A **** scheme in Italy, alongside programmes in France and the Netherlands, points to a regime in which traceability, due diligence and end-of-life responsibility sit alongside price. Questions from sourcing directors now start less from volume and unit cost than from exposure to legal, reputational and supply risk.

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