BUENOS AIRES, March 16 (Reuters) – Buenos Aires Fashion Week bustles with models showing off the creations of local designers, some well known and some hoping to break through in one of Latin America’s most influential fashion capitals.
This year, though, the glamour on the runway contrasts sharply with the turmoil behind it: Argentina’s textile and apparel sector is entering one of its worst downturns in decades, battered by ultra-cheap imports – many from Chinese fast-fashion platforms – that are flooding the market.
President Javier Milei’s market-opening agenda, aimed at deregulating trade, driving competition and lowering prices, has accelerated this shift. Last year, his government cut clothing and footwear tariffs from 35% to 20% and it has relaxed rules on cross-border e-commerce orders, lifting in 2024 the duty-free threshold for courier shipments to $400.
Milei’s policies have helped rein in inflation, stabilize prices and boost economic activity, primarily in agriculture.
But, when combined with cheaper imports, some of the measures are deepening pain for domestic industries like textiles.
“Emotionally, the environment feels strange. People seem sadder, more stressed. It’s harder to make it to the end of the month,” said bridal gown designer Valentina Schuchner as she made last-minute preparations on her collection this month for fashion week, known as BAFWEEK.
Schuchner, 29, said she feels fortunate to be presenting her collection at BAFWEEK for the fourth time. But she lamented that other local brands are disappearing around her.
“Sales are down, consumption is way down. People just don’t have the money for clothes or luxuries,” she said.
A spokesman for Milei’s trade ministry declined to comment for this story.
FAST FASHION, FAST CHANGES
Argentina’s clothing industry chamber said door-to-door imports shipped directly from other countries to consumers’ homes almost quadrupled last year. China has been a particular beneficiary – its share of textile and clothing imports has surged from roughly 55% in 2022 to 70% in 2025, driven heavily by Shein and Temu, said Priscila Makari, director of industry group Fundacion Pro Tejer.
This shift has happened at the same time as Washington has been urging its regional partners to counter Chinese influence. Yet a growing dependence on trade with China is creating a geopolitical balancing act for U.S. allies like Milei and new Chilean president Jose Kast.
Some consumers are rejoicing at the greater choice.
Shoppers like Sarah Alcaje, 24, long frustrated by limited variety and high prices – especially outside major Argentine cities – have turned increasingly to Shein and Temu. The two retailers have surged in popularity across Latin America in recent years, drawing in young consumers with rock-bottom prices, constant promotions and door-to-door delivery.
Alcaje said she used to cross the border from Mendoza into Chile to find affordable clothes. Now she buys everything with a few taps on her phone.
“With these online platforms, it’s so much easier to buy shoes, clothes and everything else. The prices are very good, and the best part is that it arrives so quickly,” Alcaje said.
TEXTILE WORKFORCE SHRINKS
For domestic manufacturers, it is hard to compete. Argentina’s textile sector has cut 16% of its workforce since 2023, shrinking from about 121,000 employees to 102,000 by the end of last year, according to industry data published in February.
At the family-run Amesud textile plant in the industrial zone of San Martin outside Buenos Aires, chief executive David Kim said the factory is running at just 30% capacity.
After investing $10 million in imported machinery over the past decade to meet the demand of clients including Nike, Puma and local kids’ clothing brand Mimo & Co., much of the equipment now sits idle.
“This the worst crisis in our history,” Kim said from the factory, where many of the machines were shut off on a weekday afternoon.
“We have no problem competing, but we need to avoid being crushed by taxes, labor costs, and union dues that don’t exist in other countries,” he added.
As orders collapsed, Kim has cut staff from about 420 workers to roughly 240 and reduced production days from five per week to four.
“We’re afraid that at some point we won’t even be able to cover our costs,” Kim said. “We’re afraid that many companies in our sector will disappear.
“We hope it won’t be us.”
Fundacion Pro Tejer said Milei’s policy changes have tilted the playing field further against domestic textile producers at a time the sector is already weakened by a steep drop in consumer spending.
“Everyone, from small entrepreneurs to major designers, is going through an extremely difficult situation,” said Pro Tejer’s Makari.
“Argentina has huge potential, a long history, highly skilled designers, workers, strong family traditions. It’s heartbreaking to see jobs lost and companies closing.”
(Reporting by Cassandra Garrison; Editing by Christian Plumb and Rosalba O’Brien)
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