Joleen Ong is senior director, brand and retailer membership at Cascale. She has spent over 15 years working on supply chain sustainability, human rights and responsible purchasing practices at Cascale Member Brands, Columbia Sportswear Company and Fanatics, and Social Accountability International. In this blog, she shares her observations and predictions on what’s at stake for decent work and climate action amid the latest wave of tariffs.
If global trade talks have taught us anything, it’s that their ripple effects are far-reaching – impacting workers, supply chains, and climate commitments around the world. The latest round of U.S. tariff negotiations is already reshaping sourcing strategies and business models, with significant implications for sustainability, labor rights, and compliance.
As companies adjust to these shifts, they face a critical question: will sustainability be deprioritized, or will it be embedded as a strategic advantage in the face of disruption?
With over 15 years working in sustainability and human rights — at both global brands and nonprofit organizations — I’ve seen how uncertain geopolitical conditions can either derail progress or catalyze bold action. These moments call for resilience, but more importantly, for courage.
Since the introduction of U.S. tariffs on Chinese imports in 2018, many brands have reshaped their sourcing models — consolidating suppliers, diversifying production, and pursuing tariff engineering strategies. Amid this urgency, responsible purchasing practices are at risk of being sidelined.
Stemming from 2018, some brands pivoted to manufacturers with global footprints for sourcing flexibility. Others reduced orders or exited countries altogether, often with little notice – sometimes leveraging the force majeure clauses in their contracts with factories to cancel existing orders. These abrupt shifts can destabilize suppliers, disrupt operations, and weaken labor protections. In worst-case scenarios, workers face layoffs without severance, unpaid wages or overtime, and shuttered factories.
Order volatility also drives increased reliance on contract labor — particularly vulnerable workers often paid via third-party agencies. This indirect structure undermines accountability and worker protections as it can be hard to detect or calculate any fees workers may pay for their jobs.
Adding to the challenge, U.S. budget cuts to the Department of Labor’s International Labor Affairs Bureau (ILAB) threaten programs like the International Labor Organization’s Better Work program. Better Work-affiliated countries such as Jordan and Haiti are already feeling the impact, as the U.S. is a key funder. These cuts jeopardize hard-won progress in labor rights, audit convergence, and factory compliance.
Despite these challenges, tools like the The Converged Assessment Framework (CAF) from Social & Labor Convergence Program (SLCP) and the Better Buying Purchasing Practices Index (BBPPI) from Better Buying may offer a path forward with objective data to guide brands’ sourcing strategies and purchasing practices.
Uncertainty doesn’t just affect workers — it also jeopardizes climate action by dulling the market signals needed to drive supply chain decarbonization.
For factories, especially in emerging markets, long-term business certainty is essential to justify the major capital expenditures (CAPEX) required for climate mitigation. Upgrades like replacing coal-fired boilers, installing rooftop solar, or transitioning to renewable energy carry high upfront costs and long payback periods. These decisions rely on confidence in stable, long-term buyer relationships.
Although many manufacturers are advancing their own sustainability strategies, uncertainty around order volumes or transactional sourcing relationships can delay or halt critical investments. This chilling effect is especially pronounced among Tier 1 and Tier 2 facilities, which often require financing, technical support, and clear demand signals to move forward.
While many manufacturers are advancing their own sustainability strategies, inconsistent orders and transactional sourcing relationships create hesitation. Tier 1 and Tier 2 facilities — often reliant on financing and technical support — are particularly at risk of stalling progress.
Cascale is helping to address this through our Industry Decarbonization Roadmap — a collaborative framework aligning brands, retailers, manufacturers, and solution providers around shared climate goals. By strengthening the market signal for climate action, the roadmap aims to unlock the investments needed for lasting, systems-level change.
In a rare bright spot for sustainability and responsible trade, the recent closure of the de minimis loophole marks a significant policy shift — with meaningful implications for both labor protections and global emissions.
As reported by The New York Times, 1.36 billion packages entered the U.S. last year under the de minimis exemption, which allowed goods valued under $800 to bypass tariffs and many regulatory checks. The vast majority of these shipments originated from China and were sent directly to consumers, circumnavigating oversight on issues like product safety and compliance with laws such as the Uyghur Forced Labor Prevention Act (UFLPA).
This loophole not only created an uneven playing field — undermining companies committed to ethical sourcing and compliance — but also fueled a surge in global airfreight. Since air shipping is 68 times more carbon-intensive than ocean freight, this model significantly increased the fashion industry’s emissions footprint.
Now, with the loophole closed, there’s a chance we’ll see a reduction in global emissions, and renewed incentive for companies to ensure their supply chains are transparent, traceable, and compliant with labor, safety, and environmental standards. It’s a win for brands doing the right thing — and a long-overdue step toward a more equitable and sustainable global trade system.
4. Transparency & the Courage to Adapt
While it’s often said that “brands can’t see green when they’re in the red,” recent conversations with Cascale members tell a different story. Despite economic headwinds, many brands are doubling down on their sustainability commitments — recognizing that the urgency to meet science-based targets and comply with emerging global regulations hasn’t gone away.
In fact, the ability to navigate disruption while maintaining transparency and responsible practices is quickly becoming a marker of long-term resilience. As sourcing strategies evolve, so too must the industry’s approach to protecting workers, reducing emissions, and building more equitable and future-fit supply chains.
In 2025 and beyond, Cascale is focusing its approach to deliver measurable progress across the consumer goods industry. The path forward is marked by greater focus.
Go behind the scenes with Alexandra Rieger, Senior Director of Manufacturer Membership, on her recent visit to Artistic Milliners and Diamond Fabrics – two manufacturers leading the way in sustainability and circularity – alongside Jeremy Lardeau, SVP of the Higg Index.
Fair purchasing practices are never a ‘nice to have’ – they are the glue that holds the fragile global economy together, and as Trump’s tariffs imperil the lives and livelihoods of millions of the world’s poorest workers, we need them more than ever.
