Economy Politics Local 2025-11-30T19:25:11+00:00

Imported Clothing Boom Threatens Local Industry in Argentina

The government's policy of reducing tariffs has led to an explosive boom in cheap imported clothing bales, dealing a devastating blow to local producers, closing businesses, and laying off thousands of workers.


Imported Clothing Boom Threatens Local Industry in Argentina

This mass consumption phenomenon sharply contrasts with the crisis in the local textile industry, which is on the brink of collapse. According to the Argentine News Agency, low-price competition has had a devastating impact on the sector: the textile industry reports the closure of 66 SMEs, the loss of 4,000 jobs, and around 900 suspensions, with installed capacity operating at only 40%.

The bale business: clothing at bargain prices This novel market is fed by used or minimally defective clothing, sold by weight through platforms. The measure aimed to foster competition and discourage high local prices.

Previous reports had revealed that an international brand t-shirt in Argentina cost up to 310% more than in Spain and 95% more than in Brazil.

This business model, which uses platforms like TikTok as a showcase for resellers, reinforces dependence on imports and displaces Argentine producers, unable to match the costs of imported clothing.

Context: The most expensive clothing in the region The opening to imports accelerated after the government, in March 2025, lowered tariffs on clothing and footwear (from 35% to 20%) and fabrics (from 26% to 18%).