Cascale policy paper highlights sourcing diversification, traceability and sustainability as trade conditions reshape global consumer goods supply chains
Amsterdam, Hong Kong, Oakland — September 14, 2026: Global trade fragmentation is forcing textile, clothing and footwear supply chains to move beyond highly cost-optimised models toward greater diversification, flexibility, redundancy and visibility, according to a new policy paper released by Cascale.
The global nonprofit alliance, which brings together more than 300 members across the consumer goods industry, said its new policy deep dive, The New Trade Landscape: What Global Trade Fragmentation Means for Consumer Goods Supply Chains, examines how geopolitical shifts, protectionist trade policies, climate disruption and changing regulatory requirements are reshaping global supply chains.
For textile and apparel companies, the report points to a growing shift toward multi-country sourcing, regionalisation, nearshoring and dual sourcing as tariffs, export controls and industrial policies increase supply-chain exposure and complexity.
Cascale cited analysis showing that US tariff measures contributed to the reconfiguration of more than US$400 billion in global trade flows in 2025. A 2025 McKinsey survey of 100 global companies found consumer goods businesses had the highest tariff exposure among the sectors surveyed, with tariffs affecting 43% of supply-chain activities. Among affected companies, 45% were increasing inventories, 39% were pursuing dual sourcing, and 33% were developing nearshoring or onshoring plans.
The report argues that diversification can reduce dependence on individual suppliers or markets but can also increase costs and operational complexity. For the textile and clothing industry, where production frequently spans raw-material suppliers, mills, processors, factories and logistics providers across multiple countries, Cascale said end-to-end visibility is therefore becoming increasingly important.
Sustainability and resilience converge
Cascale also links supply-chain resilience directly with sustainability. Diversifying production can introduce suppliers with different environmental and social performance levels, while regionalising production may reduce some transportation emissions without eliminating significant impacts further upstream in raw materials, processing and manufacturing.
The organisation said supply-chain redesign can nevertheless strengthen transparency and supplier accountability when sustainability is incorporated into sourcing decisions rather than managed as a separate priority.
“The visibility and data that make a supply chain sustainable are the same capabilities that make it resilient,” said Ying McGuire, CEO of Cascale, adding that companies are operating in an increasingly fragmented global trade environment.
Traceability becomes business infrastructure
For textile and clothing manufacturers and brands, traceability and standardised data are emerging as core supply-chain infrastructure, according to the paper.
Cascale said increasingly divergent regulatory requirements, including obligations relating to due diligence, product sustainability and Digital Product Passports, are increasing demand for reliable supply-chain information. Common standards could help companies reduce the cost and complexity of collecting and reconciling data across suppliers, markets and regulatory regimes.
The policy paper calls on industry leaders to connect sourcing, resilience, sustainability, supply-chain visibility, technology and trade policy within a single strategic framework. Recommended actions include supplier diversification and mapping, stronger traceability, sustainability-integrated sourcing decisions, geopolitical risk monitoring, and the use of technology and AI for forecasting and scenario planning.
Cascale also advocates common standards for comparable and interoperable data, positioning shared measurement and visibility as increasingly important tools for companies managing fragmented global supply networks.
