European Union focuses on self-sufficiency of the textile supply chain

In uncertain times, the only thing one can truly rely on is oneself. This seems to be the strategy the European Union is adopting in response to the trade war triggered in recent months by U.S. President Donald Trump. It's a tangled and unclear issue — not least because even the U.S. government itself appears uncertain about its own moves — and although it may seem like a conflict between just the U.S. and China, the ripple effects of tariff policies are, one way or another, felt globally, at least for now. Many have questioned what these policies might mean for the fashion and luxury industries; some expect a conservative shift among fashion giants (led by none other than LVMH), others use their platform during fashion week to send a political message, while others are quietly working behind the scenes to distance themselves from these unstable global powers. As highlighted by WWD, Brussels aims to build a stronger and more independent supply chain, minimizing exposure to the uncertainties stemming from trade relations with the United States and China. The focus appears to be on the textile sector, historically a cornerstone of European industry. The European Commission’s goal is to rapidly transition this sector to compete globally, moving away from dependence on raw materials and outsourced early-stage supply chains while also reducing its environmental footprint.

The European Apparel and Textile Confederation (Euratex) recently stated that the textile sector is finally ready to decisively embrace circularity, calling the progress made in establishing the European Partnership for Textiles of the Future a “critical milestone.” According to the Brussels-based organization, the European Commission and the European Technology Platform for the Future of Textiles and Clothing (Textile ETP) are set to sign a Memorandum of Understanding in the coming days, which will kick off a series of initiatives focused on circularity and innovation across all 27 member states. The overarching goal is to strengthen the EU’s strategic autonomy and bolster its global competitiveness. “Innovation is where sustainability and competitiveness meet,” noted Mario Jorge Machado, president of Euratex. At the same time, he emphasized that while the Commission’s decision is an important step, it should be seen merely as the foundation for a broader and more ambitious effort toward a truly circular textile future. This is the core principle behind the “European Partnership for Textiles of the Future”: to strengthen industrial capacity by driving research and innovation with sustainability at its heart. In short, the goal is to enable Europe’s textile industry to remain competitive in an increasingly unstable global market while capitalizing on local skills and expertise.

On the one hand, the focus is on promoting new technologies and circular business models; on the other, the initiative aims to create high-quality employment and preserve production chains rooted within European territory. Notably, the Commission — in collaboration with private partners — has allocated over 70 million euros for the period 2025–2030: an investment that clearly signals a commitment to a “green” shift and to positioning the textile sector at the forefront of innovation within the broader ecological transition. At the same time, the issue of securing critical raw materials has become essential for several high-tech and strategic sectors, including the military industry and electric vehicles. As reported by Il Post, the EU appears determined to avoid repeating past mistakes, such as its overwhelming reliance on external energy suppliers at the onset of Russia’s invasion of Ukraine. The 47 strategic projects announced by the Commission, with a projected investment of 22.5 billion euros, aim to reduce this vulnerability: rather than merely importing refined metals and processed resources, the EU is working to build a “closed-loop supply chain” within its borders, encompassing extraction, processing, and — crucially — recycling of these materials.

These initiatives should not be seen as a simplistic retaliation through counter-tariffs or a move toward isolationism. Rather, they reflect a broader reflection on how to navigate a globalized system that is rapidly evolving — especially in the wake of the pandemic and the ongoing crisis sparked by the war in Ukraine, as highlighted by WWD. The primary goal is to enhance the economic and industrial resilience of the European Union, enabling it to better withstand external shocks while continuing to advance its green agenda. Naturally, this discussion also extends to the luxury and fashion sectors — industries in which Europe plays a leading role, both economically and culturally. Trade tariffs and protectionist policies from the United States can significantly impact exports of Made in Europe goods; investing in strategic autonomy and more resilient supply chains is thus essential to safeguard the competitiveness of high-end brands and manufacturers without compromising quality or innovation in sustainability. It’s clear that Brussels is attempting to respond to the protectionist policies of the world’s two largest economies with what could be called a form of sustainable protectionism. Should the textile sector truly become self-reliant — and meet its sustainability goals — the Commission’s plan could indeed mark a turning point for the future of the luxury industry at large.