Why is H&M shifting to regional supply chains?

H&M is shifting to regional supply chains for geopolitical reasons, to enhance resilience learned from COVID, and to mitigate potential U.S. tariffs on imports.

Which regions is H&M considering for sourcing?

H&M is exploring options to source more products from Central America for the U.S. and Brazil, and from Turkey for European markets.

What impact could U.S. tariffs have on H&M's pricing?

H&M's finance chief mentioned that if tariffs increase for everyone, it will affect their pricing strategy, but they plan to position their offerings consistently regardless of tariffs.

What percentage of H&M's total revenues came from the U.S. in 2023?

In 2023, the U.S. accounted for 14% of H&M's total revenues, making it the retailer's second-biggest market by sales.

How is H&M preparing for potential trade barriers?

H&M has drawn up scenarios for potential trade barriers, monitoring countries under higher scrutiny connected to these issues as they move forward.

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Home > Headlines > H&M speeds up shift to regional supply chains amid tariff threat

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H&M speeds up shift to regional supply chains amid tariff threat

Published by Global Banking & Finance Review®

Posted on January 30, 2025

2 min read

Last updated: January 26, 2026

H&M's regional supply chain strategy in response to tariff threats - Global Banking & Finance Review — An image illustrating H&M's strategic shift towards regional supply chains to mitigate tariff impacts, reflecting their focus on sourcing closer to key markets in Europe and the U.S.

H&M Accelerates Shift to Regional Supply Chains Amid Tariff Concerns

By Helen Reid

STOCKHOLM (Reuters) - Swedish fast-fashion retailer H&M is working to buy more of its clothes and accessories from suppliers closer to its key markets in Europe and the U.S., its finance chief told Reuters on Thursday, in part to prepare for potential U.S. import tariffs.

"For many reasons we need to create a more regionalised supply chain, both for geopolitical reasons, learning through COVID that we need to create more resilience in our supply chain, and also to support responsiveness and the customer offer," Adam Karlsson said in an interview after H&M's quarterly results.

Potential U.S. tariffs on imports are also pushing H&M to seek suppliers closer to its U.S. market, Karlsson said, adding that the retailer had drawn up scenarios for such trade barriers, which he called a "concern".

"Of course it is a factor, and there are certain countries under higher scrutiny connected to trade barriers, and we're monitoring that as we move ahead," he said, adding that the fact H&M sources from a wide range of countries was an advantage.

H&M is exploring options to source more products from Central America, Karlsson said, to serve markets including the U.S. and Brazil. For Europe, it is sourcing more from Turkey and looking to build its supplier base in Morocco and Egypt.

U.S. President Donald Trump has made multiple threats about tariffs including on imports from Mexico, Canada, China, and the European Union, and has also floated the idea of a blanket tariff on all imports, which retailers and economists have said would drive prices up.

"If tariffs increase for everyone, there will be a relative position to take (on pricing)," Karlsson said. "We should position our offering in the same way no matter whether there are tariffs or not."

H&M has not disclosed country-level sales for 2024, but in 2023 the U.S. was its second-biggest market by sales, accounting for 14% of total revenues.

(Reporting by Helen Reid; Editing by Mark Potter)

H&M speeds up shift to regional supply chains amid tariff threat

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H&M Accelerates Shift to Regional Supply Chains Amid Tariff Concerns

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