Tariffs that make overseas production more expensive could redirect demand toward domestic manufacturers.
For much of the modern era, the logic of global trade was simple: make it cheaper, make it elsewhere. Now, as Washington proposes steep tariffs on Bangladeshi apparel exports, that logic is being quietly rewritten. Three American-linked manufacturers—Unifi, Jerash Holdings, and FIGS—find themselves positioned at the intersection of policy and possibility, each offering a different answer to the same underlying question: when the cost of importing rises, what does domestic production become worth?
- Proposed US tariffs on Bangladeshi and Asian apparel suppliers are forcing brands and retailers to urgently reconsider where and how they source their goods.
- Unifi's recycled yarn operations in North Carolina remain unprofitable, creating tension between its strategic positioning as a domestic supplier and its current financial fragility.
- Jerash Holdings has quietly moved into profitability by manufacturing in Jordan, a country that carries lower US import duties than most Asian competitors—making it an immediate beneficiary of tariff-driven sourcing shifts.
- FIGS is riding genuine brand loyalty and improving margins in healthcare workwear, but its premium valuation and reliance on external funding leave little room for execution stumbles.
- All three stories hinge on whether tariff policies hold and whether brands follow through on supply chain diversification—making trade policy monitoring as important as any earnings report.
Washington's tariff proposals on Bangladeshi apparel exports are changing how investors evaluate American textile and clothing manufacturers. For decades, cheap overseas labor and frictionless global supply chains made domestic production look obsolete. Now, as import duties climb, companies that make things at home—or in countries with favorable trade terms—are being reconsidered as structural beneficiaries rather than industrial relics.
Unifi, headquartered in Greensboro, North Carolina, produces recycled and synthetic yarns under the REPREVE brand, supplying apparel, automotive, and medical sectors. With roughly $525 million in annual revenue and a market cap of just $97.6 million, the company is currently unprofitable—making it a higher-risk bet. But its combination of domestic manufacturing and sustainability credentials positions it to capture demand from brands reassessing Asian supply chains. The stock trades near its assessed fair value, leaving investors to weigh whether tariff-driven tailwinds can convert operational promise into lasting recovery.
Jerash Holdings takes a different approach, manufacturing sportswear and outerwear from Jordan—a location that carries meaningfully lower US import duties than Bangladesh or India. With $166 million in revenue, $138 million of it from the United States, and a recent return to profitability that includes a dividend, Jerash offers a more immediate connection to the tariff story. Risks remain: concentrated operations in a single country, dependence on trade agreements, and working capital pressures. But for brands actively diversifying away from higher-tariff regions, Jordan's favorable status makes Jerash more compelling than its modest market cap of $57 million might suggest.
FIGS occupies different terrain entirely—designing and selling premium scrubs and healthcare workwear directly to medical professionals through its website, app, and growing retail presence. With $666 million in revenue and a $1.7 billion market cap, it is the largest and most established of the three. Net margins have improved to 6.1 percent, brand loyalty among clinicians is genuine, and management is reinvesting in bulk orders and product extensions. The risks are real—a high price-to-earnings multiple, reliance on external funding, and exposure to tariff and currency headwinds—but the combination of brand strength and execution momentum makes the upside case meaningful.
What connects these three companies is not certainty but a shared structural question: if the cost of importing rises persistently, what does domestic or favorably positioned production become worth? Trade policy can shift, and supply chains are adaptive. But for investors watching tariffs reshape manufacturing economics, Unifi, Jerash, and FIGS each represent a distinct angle on the same emerging answer.
Washington's tariff proposals on Bangladeshi apparel exports are reshaping how investors think about American textile and clothing manufacturers. For decades, the economics of global trade pushed production overseas—cheaper labor, established supply chains, minimal friction. Now, as import duties climb, that calculus is shifting. Companies that make things at home, or in countries with favorable trade terms, suddenly look less like relics and more like beneficiaries of a structural change. Three publicly traded firms sit at the center of this story, each positioned differently to capture demand if brands and retailers begin moving sourcing back toward the United States.
Unifi, based in Greensboro, North Carolina, manufactures recycled and synthetic polyester and nylon yarns sold under the REPREVE brand to textile makers, knitters, and weavers who supply the apparel, automotive, home furnishings, industrial, and medical sectors. The company generated roughly $525.6 million in revenue last year, with the Americas accounting for $325.8 million, Brazil contributing $110 million, and Asia adding $89.8 million. Its market capitalization sits at $97.6 million. The company is unprofitable today and has reported recent losses, which makes this a higher-risk proposition. But Unifi occupies an interesting intersection: it combines onshoring exposure with a commitment to recycled materials, a combination that appeals to both tariff-conscious buyers and sustainability-minded brands. If import duties on Asian textiles persist, management believes its U.S. footprint is positioned to capture demand from companies reassessing their supply chains. The stock trades at a low price-to-sales multiple and near its internally assessed fair value, leaving investors to decide whether a potential supply chain realignment can translate operational progress into a sustainable recovery.
Jerash Holdings, by contrast, manufactures apparel from Jordan—a location that carries lower effective U.S. import duties than competitors in Bangladesh, India, and other Asian manufacturing hubs. The company produces customized sportswear and outerwear, including t-shirts, jackets, vests, pants, shorts, polo shirts, and personal protective equipment for major global brands and retailers. It generated $166.3 million in revenue, with the United States accounting for $138.2 million and meaningful sales to China, Hong Kong, South Korea, Jordan, and other markets. Its market cap is $57 million. Unlike Unifi, Jerash has recently moved from losses into profitability and pays a dividend. The company benefits directly from the tariff story: as Section 301 changes raise costs for competitors in higher-tariff regions, Jerash's Jordan-based operations become more attractive to brands actively diversifying away from those zones. The risks are real—dependence on favorable trade agreements, working capital pressures, and concentrated operations in a single country. But for investors tracking how tariffs and supply chain shifts are reshaping apparel sourcing, Jerash presents a more nuanced picture than headline numbers suggest.
FIGS operates in a different market entirely. The company designs and sells scrubs and related lifestyle clothing for medical professionals through its website, app, B2B channel, and a growing retail footprint in the United States and internationally. It generated $666.1 million in revenue, with $553 million from the United States and $113.1 million from the rest of the world. Its market capitalization is $1.7 billion. FIGS offers investors a direct-to-consumer play on U.S. onshoring and premium healthcare workwear. The company's direct-to-consumer model supports margins, and its brand has genuine loyalty among clinicians. Earnings are described as high quality, and net margins have improved to 6.1 percent. Management continues reinvesting in growth through TEAMS bulk orders, product extensions, and selective retail expansion. The downsides are meaningful: the stock trades at a relatively high price-to-earnings multiple, the company relies on external funding, and it faces tariff and currency headwinds as global sourcing and trade rules evolve. Still, the combination of strong brand equity, improving profitability, and real execution momentum makes FIGS a stock where the upside case is notable but accompanied by genuine risk.
What ties these three together is not a guarantee but a theme: tariffs that make overseas production more expensive could redirect demand toward domestic manufacturers or those in favorable trade positions. Unifi benefits if brands need more U.S.-made yarn. Jerash benefits if apparel makers shift sourcing from higher-tariff Asian countries to Jordan. FIGS benefits if U.S. healthcare workwear demand strengthens and domestic production becomes more competitive. None of these outcomes is certain. Trade policy can shift. Brands can find workarounds. Supply chains are resilient and adaptive. But for investors watching how tariffs reshape manufacturing, these three stocks represent different angles on a single structural question: what happens when the cost of importing goods rises, and domestic production suddenly looks less like a relic and more like a rational choice.
Notable Quotes
Management has highlighted that its Americas footprint is positioned to pick up demand if trade barriers persist.— Unifi management
Jerash Holdings benefits from lower effective U.S. import duties than competitors in Bangladesh, India and other Asian hubs.— Analysis
The Hearth Conversation Another angle on the story
Why does a tariff on Bangladeshi apparel suddenly make a company like Unifi interesting? It's been losing money.
Because tariffs change the math. If importing yarn from Asia gets expensive, U.S. brands might buy from Unifi instead. The losses matter, but they're not the whole story—the company is positioned at the moment when that calculus flips.
But Jerash is in Jordan, not the United States. How is that onshoring?
It's not onshoring in the literal sense. It's tariff arbitrage. Jordan has lower effective import duties than Bangladesh or India. As those countries get hit with higher tariffs, Jerash becomes the cheaper alternative for brands that want to diversify away from the highest-tariff regions.
FIGS is already profitable and growing. Why does it need tariffs to succeed?
It doesn't. But tariffs could accelerate what's already working. If U.S. healthcare workwear becomes more price-competitive relative to imported alternatives, FIGS's brand loyalty and direct-to-consumer model give it an edge to capture that shift.
What's the real risk here? That tariffs disappear?
That's one. But also that brands find workarounds—moving production to countries with better trade agreements, or simply accepting higher costs and passing them to consumers. Supply chains are more flexible than they look.
So these stocks are bets on sustained tariff policy?
Partly. But they're also bets on whether brands will actually move sourcing, and whether these companies can execute at scale. The tariff is the catalyst, but execution is the real test.