While Buenos Aires Fashion Week showcases local talent, Argentina’s textile industry faces its worst crisis in decades. Cheap imports from Chinese platforms like Shein and Temu have devastated domestic manufacturers, forcing massive layoffs and factory closures.
BUENOS AIRES – While models strut down runways displaying the latest designs from Argentina’s fashion elite, the country’s textile industry faces an unprecedented collapse that threatens to destroy decades of manufacturing tradition.
The glamorous spectacle of Buenos Aires Fashion Week masks a harsh reality: Argentina’s clothing and textile sector is experiencing its most severe downturn in generations, overwhelmed by an avalanche of ultra-low-cost imports primarily from Chinese fast-fashion giants.
The crisis has intensified under President Javier Milei’s free-market reforms designed to increase competition and reduce consumer costs. His administration slashed import duties on clothing and shoes from 35% to 20% last year while easing restrictions on international online shopping by raising the tax-free limit for courier deliveries to $400 in 2024.
While Milei’s economic policies have successfully curbed inflation and boosted certain sectors like agriculture, they’ve delivered a crushing blow to domestic textile manufacturers struggling to survive against foreign competition.
“The atmosphere feels different now. Everyone seems more depressed and anxious. Making ends meet has become increasingly difficult,” explained wedding dress designer Valentina Schuchner while preparing her fourth collection for BAFWEEK this month.
Despite her personal success at the fashion showcase, the 29-year-old designer expressed concern about the disappearing landscape of local brands around her.
“Revenue has plummeted, and consumer spending has collapsed. People simply lack disposable income for clothing or non-essential purchases,” Schuchner observed.
Officials from Milei’s trade ministry refused to provide comment on the industry’s struggles.
CHINESE PLATFORMS DOMINATE MARKET
According to Argentina’s clothing industry association, direct-to-consumer shipments from overseas suppliers nearly quadrupled during the previous year. China has emerged as the primary winner, with its portion of textile and apparel imports jumping from approximately 55% in 2022 to 70% in 2025, largely due to platforms like Shein and Temu, according to Priscila Makari from industry organization Fundacion Pro Tejer.
This development occurs as the United States pressures regional allies to reduce Chinese economic influence, creating diplomatic challenges for pro-American leaders like Milei and Chile’s new president Jose Kast.
Many Argentine consumers welcome the expanded options and lower prices. Sarah Alcaje, 24, represents countless shoppers who previously struggled with limited selection and expensive local merchandise, particularly outside major metropolitan areas.
Alcaje recalls traveling across the border to Chile from Mendoza to find reasonably priced clothing. Today, she completes her shopping with simple smartphone clicks.
“These digital marketplaces make purchasing footwear, apparel and other items incredibly convenient. The costs are extremely reasonable, and the rapid delivery is fantastic,” Alcaje said.
MASSIVE JOB LOSSES HIT WORKERS
Local manufacturers find themselves unable to match foreign competitors’ pricing. Argentina’s textile sector eliminated 16% of its workforce between 2023 and late last year, dropping from approximately 121,000 to 102,000 employees, based on industry statistics released in February.
David Kim, who runs the family-owned Amesud textile facility in San Martin’s industrial district outside Buenos Aires, reports his factory operates at merely 30% capacity.
After spending $10 million on imported equipment over ten years to serve major clients including Nike, Puma and domestic children’s brand Mimo & Co., most machinery now remains unused.
“This represents the most devastating crisis we’ve ever experienced,” Kim stated from his factory floor, where numerous machines sat silent during a weekday afternoon.
“We’re prepared to compete fairly, but we can’t survive being overwhelmed by taxation, employment expenses, and union obligations that don’t burden manufacturers in other nations,” he continued.
As contracts disappeared, Kim reduced his workforce from roughly 420 employees to about 240 and cut production from five days weekly to four.
“We fear reaching a point where we cannot meet basic operational expenses,” Kim warned. “We worry that numerous businesses in our industry will cease to exist.
“Hopefully, we won’t be among them.”
Fundacion Pro Tejer argues that Milei’s policy adjustments have created additional disadvantages for domestic textile manufacturers already weakened by dramatically reduced consumer spending.
“Every participant, from individual entrepreneurs to established fashion houses, faces extremely challenging circumstances,” Pro Tejer’s Makari explained.
“Argentina possesses tremendous capability, extensive heritage, exceptionally talented designers and workers, plus strong family business traditions. Watching employment disappear and enterprises shut down is truly devastating.”