CBP has reclassified certain women’s underwear as sanitary pads and similar articles under HTSUS 9619.00.61 (10.8 percent MFN duty) or HTSUS 9619.00.64 (14.9 percent MFN duty) rather than as women’s cotton briefs under HTSUS 6108.21.00 (7.6 percent MFN duty) or HTSUS 6108.91.00 (8.5 percent MFN duty).

Clothing exports experienced a 6% year-on-year decline in the first five months of 2025. According to Euromonitor estimates, apparel retail sales grew modestly by 4% in 2024. However, recent trade tensions and tariff policies may significantly disrupt supply chains, potentially impacting overall demand and Hong Kong’s exports.

On 30 June 2025, the Official Journal of the European Union published Council Regulation (EU) 2025/1292 of 23 June 2025, opening and providing for the management of autonomous tariff quotas of the Union for certain agricultural and industrial products, and Council Regulation (EU) 2025/1303 of 23 June 2025, suspending customs duties on certain agricultural and industrial products. Pursuant to these two regulations, operators – including those based in Hong Kong – may find increased opportunities to sell the goods covered by those regulations to EU customers.

On May 14, 2025, the European Union officially approved the final version of the Product Environmental Footprint Category Rules (PEFCR) for apparel and footwear.

The U.S. Court of Appeals for the Ninth Circuit has affirmed a US$26 million jury verdict against a U.S. importer for knowingly submitting false customs declarations to avoid paying AD duties of nearly 200 percent on welded outlets imported from Mainland China.

On 12 June 2025, the European Commission published a draft implementing Regulation creating a common disclosure format for the discarding and destruction of unsold consumer products. The disclosure obligation focuses on the discarding of unsold consumer products for the purposes of any type of waste treatment operation including for reuse and recycling. Feedback on the draft implementing Regulation is invited until 10 July 2025.

Leading organisations, in furtherance of helping the European Union manage Europe’s most pressing environmental issues, published a joint position paper, ‘No Excuse for Destruction: RREUSE, ECOS and EEB’s stance on derogations to the apparel and footwear destruction ban,’ on 3 June 2025. The position paper has proposed various recommendations for the European Commission to follow regarding derogations to the apparel and footwear destruction ban.

Currently, just 1% of the world’s clothing material is recycled into new items. Budapest-based fashion company SLANGSLANG, with a 20-year history, aims to lead in sustainability. Founder and Creative Director Szonja Lang focuses on upcycling and recycling materials. She also collaborates with a number of Hong Kong’s leading fashion institutes, which have allowed her to explore the various new materials and technological innovations the city has on offer.

On April 16, 2025, the European Commission approved the first working plan under the ESPR. This plan places a focus on sectors such as textiles, furniture, tyres, mattresses, iron, steel, aluminium, and incorporates overarching criteria like repairability and recyclability. It is crucial for Hong Kong traders to stay vigilant, keeping track of evolving regulations, delegated acts, and product requirements to guarantee compliance with EU directives for goods destined for the European market.

As part of Horizon Europe, the European Commission has announced three new European partnerships, namely, in the field of textiles, photovoltaics and advanced materials . These areas have been proposed in the Horizon Europe strategic plan for 2025-2027. A fourth co-programmed partnership on virtual worlds is expected to be launched later in 2025.