Weave Essence Sourcing Insights: McKinsey Predicted a 35% Price Hike. It Was Only 2%. Where Did the 33% Go?

McKinsey predicted US apparel sourcing costs would rise 35% due to tariffs. The actual increase was just 2%. Where did the missing 33% go?In this episode, Jackie — Head of Textile Engineering at Weave Essence — breaks down the four channels that absorbed the tariff shock: supplier margin compression, retailer margin squeeze, tariff engineering, and geographical shift.You'll learn why 2025's price stability was an illusion, why moving out of China may create more risks than it solves, three strategies for brand buyers in 2026, and how tariff engineering can reduce costs without changing product design.Produced by Weave Essence — custom scarf and knitwear manufacturer. Oeko-Tex, BSCI, GRS certified. Factory-direct since 2014.