After years of uncertainty, 2026 will be mostly challenging: growth will remain limited to a few percentage points, but beneath the surface, the sector is moving faster than ever. Trade conflicts, generative AI, and critical consumers will set the tone, according to The State of Fashion 2026 by The Business of Fashion and McKinsey.
1. Tariff turbulence
US trade tariffs will continue to have a major impact in 2026. According to the report, 76% of executives expect tariffs to affect the fashion sector. After all, the higher levies impact every link in the chain. Brands are raising prices, relocating their sourcing, and accelerating investment in automation to protect their margins. Large suppliers are optimizing their global footprint, while smaller players are experiencing increasing financial pressure. In short, everyone is being forced to review their production model.
