The AAFA/WRAP Guidelines for Responsible Sourcing in Tariff-Impacted Supply Chains (June 2025) is a joint publication by the American Apparel & Footwear Association (AAFA) and Worldwide Responsible Accredited Production (WRAP). It provides guidance for companies to responsibly navigate sourcing decisions in the face of fluctuating tariffs, emphasizing the need to consider impacts on suppliers, workers, and production timelines.
Tariff Impact Assessment
• Evaluate Duration and Magnitude: Assess whether tariff increases are temporary or permanent. A threshold of 20% is suggested for long-term shifts in the sourcing strategy.
• Consider Stacked Tariffs: Be aware of Section 301 regulations and reciprocal trade measures that may stack on existing tariffs.
• Monitor Input Restrictions: Pay attention to fabric origin rules and other input restrictions that may affect third-country processing.
Supplier Transition Protocol
• Transition Planning for Major Suppliers: For suppliers to handle more than 10% of production capacity, implement a detailed transition plan.
• Legal Contract Reviews: Conduct thorough reviews of contracts, focusing on long-lead inventory commitments and potential legal challenges.
• Worker Protection Plans: Develop plans for worker protection, including severance calculations and reemployment pathways.
New Supplier Verification
• WRAP Certification or Equivalent: Ensure new suppliers have WRAP certification or equivalent social compliance audits.
• Monitor Production Capacity: Prevent unauthorized subcontracting by closely monitoring production capacity.
• Implement Overtime Controls: Establish controls to manage overtime during ramp-up phases to avoid worker exploitation.
Bureau Veritas Solutions
Tariff Resilience Program
• Three-Phase Supplier Diversification Strategy: A structured approach to diversify suppliers and mitigate risks.
• Capacity Mapping: Detailed mapping of production capacities across sourcing regions.
• Digital Monitoring Platform: A robust platform for tracking compliance and managing supply chain risks.
Ethical Transition Framework
• Supplier Risk Assessments: Systematically evaluate supplier reliability and associated risk factors to ensure supply chain continuity
• Worker Impact Analysis Reports: Generate reports on the impact of transitions on workers.
• Social Compliance Verification Audits: Conduct audits to ensure compliance with social responsibility standards.
If you have any questions, please contact your customer service representative or email: info@us.bureauveritas.com
Resources
• AAFA WRAP Guidelines for Responsible Sourcing (you will need to log in to access)
• Supply Chain Resilience Program | Secure Your Supply Chain in a Shifting Global Landscape
• Supply Chain Resilience Program Resources Center
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