Textile Firms Address EU-Mercosur Deal, Tariffs, 2026 at Milano Unica

MILAN – The slowdown in fashion and luxury spending has yet to fully reverse its course, but textile companies sounded cautiously optimistic at the three-day trade show Milano Unica, which wrapped up here Thursday.

Although still feeling the pinch of 2024, the 730 exhibitors at the textile trade fair were confident about sequential improvements in 2026, building on the bounceback experienced in 2025, despite a dampened macro economy and geopolitical unrest that has dented consumer confidence and brands’ willingness to overstock.

The spring 2027 collections on display reflected the mood, rooted in lightweight blends where linen reigned supreme, done in earthy tones and washed pastels.

“The past couple of years have been really difficult, impacted by wars and trade wars, a depreciation of the American dollar and significant price increases at retail. But 2026 represents a positively challenging year, to find renewed balance between the end consumer and our supply chain, rooted in closeness and collaboration,” said Milano Unica president Simone Canclini, who is also chief executive officer of the namesake fabric maker.

“We need to value our products more effectively. It’s the primary ingredient of fashion but it’s at risk of being neglected or not fully understood,” Canclini said.

“Business has been picking up since last July with sequential improvement throughout the second half of 2025 across regions, including China that seems to be reawakening,” said Alessandro Barberis Canonico, CEO of the woolen mill Vitale Barberis Canonico. The company posted sales of 137 million euros in 2025, up 7 percent versus the previous year.

“The only concern is that when the market expands, the prices for raw materials tend to increase and that could potentially affect us in the second half of 2026,” he added.

“The market is dominated by gut responses right now, especially in the U.S.,” said Ercole Botto Poala, CEO at fellow mill Reda, noting the country represents 20 percent of the company’s business.

Overall, in 2025 Reda’s sales were up 1 percent to 84 million euros. He forecast single-digit growth in 2026, driven also by a reawakening of China, which contributes 10 percent to Reda’s business, but the CEO warned that the stronger euro is weakening trade.

“There is still a lot of confusion, and fear and instability, coupled with flat consumption. It’s not an easy context to manage. If the new normal is uncertainty, then I think there’s an opportunity because we are well equipped to face change and react to it,” said Andrea Crespi, general manager at man-made fabric specialist Eurojersey.

The company has set ambitious goals for the year ahead with sales budgeted to increase 7 percent to 70 million euros, driven by widened footprints in men’s apparel, sports and ready-to-wear overall, which currently account for 65 percent of the business. The remainder is generated by swimwear and underwear.

“We believe that 2026 will show further improvement, but we shouldn’t expect the same performance as 2023,” said Silvio Botto Poala, CEO of the Biella, Italy-based mill Botto Giuseppe.

“We are optimistic about 2026, although daily news and the increase in energy costs could impact the overall scenario,” echoed Silvana Pezzoli, executive vice president and chief commercial officer at Sitip.

“Our ambition is to maintain a competitive position in an ever-evolving landscape by adopting flexible and innovative solutions to meet emerging industry demands… [and be] prepared to tackle challenges and seize the opportunities that lie ahead,” offered Franco Mantero, CEO at silk specialist Mantero, pragmatically.

Fellow silk fabric maker Fasac 1955 has been growing steadily over the past five years, with a 7 percent increase logged in 2025, driven by its strong exposure to European markets and despite weaker demand for prints, its bread-and-butter, said Carlo Curti, a second-generation member of the founding family and a board member.

“The fashion market is changing because consumers could no longer find great, value-for-money products and are looking for new spaces, which I’m hoping brands will be able to fulfill and we tap into,” said Reda’s Botto Poala.

As Piacenza Group continues the integration of firms in its portfolio — which comprises Lanificio Fratelli Piacenza, Piacenza 1733, Lanificio Piemontese, Lanificio F.lli Cerruti dal 1881, Arte Tessile and Filatura Cardata Lanefil Srl — co-CEO Vasiliy Piacenza forecast low- to midsingle-digit growth in 2026. The company recently opened a warehouse in Hong Kong to better serve accounts in Asia, its third region by sales, behind Italy and France. It will also open a showroom in Milan toward the end of the first half.

Manteco logged a 5 percent uptick in 2025 sales and expects to replicate that increase in 2026 provided no headwinds occur, especially in the U.S., a boon last year, together with Japan and Korea. The company opened a showroom in New York in 2025.

Albini Group’s upscale trajectory, aimed at expanding its footprint in the luxury segment that currently accounts for about a third of sales, is seen as instrumental in sustaining momentum in 2026 on the heels of flat sales in 2025, which amounted to 155 million euros. The cotton specialist’s textile division inched up 6 percent last year to 115.5 million euros, compensating for a slower performance of the yarns division.

“We see opportunities in 2026 if the luxury sector manages to lure back Chinese consumers and the U.S. maintain their current standards,” said Stefano Albini, the company’s CEO.

According to preliminary data provided by Confindustria Moda, 2025 sales of Italian textiles are expected to drop 1.5 percent versus a year earlier to 6.9 billion euros, an improvement compared to the 8.8 percent drop experienced in 2024.

Exports are forecast to log a 1.5 percent decline to 3.73 billion euros. In the nine months ended Sept. 30, consolidated figures show an 5.9 percent uptick in exports to the U.S. and 9.2 percent increase to the U.K. Exports to China dropped 17.7 percent in the period.

Guessing Game in the U.S.

The U.S. has proven to be a strong market for the Italian textile sector despite being prone to sudden stops and fluctuations, especially under President Donald Trump’s unpredictable trade policies.

To wit, the number of U.S. visitors to this edition of Milano Unica increased 13.5 percent, followed by the French, up 8.5 percent.

The U.S. is the largest market for Botto Giuseppe and although tariffs have not significantly dented business so far, its CEO didn’t rule out a pinch in the second half of the year.

Similarly, Albini minimized the impact of tariffs so far and pointed to the strength of the company’s textile brands, including the storied Thomas Mason, as a lever for success in the U.S., currently representing 18 percent of the company’s sales, or 20 million euros.

According to Reda’s Botto Poala, the U.S. market is facing the greatest challenges.

“It’s changing — as the Saks Global bankruptcy suggests — and I see a lot of difficulties but also opportunities… consumers are there, they may need to be tapped into via alternative routes to the traditional ones,” he said.

New Horizons With EU-Mercosur Deal?

As the world settles into new trade realities, the much-anticipated deal between the European Union and the Mercosur countries — the South American bloc that includes Argentina, Brazil, Paraguay and Uruguay — was described as a not-to-be-missed opportunity.

However, last Wednesday the European Parliament voted to delay the deal’s ratification, referring the pact to the European Court of Justice to examine whether it is compatible with the bloc’s existing treaties.

“The world is global, we cannot build walls,” said Reda’s Botto Poala, touting the deal’s positive effects long-term.

“It’s an opportunity, but it will require some time, especially as those economies will need to gain confidence before tapping into Made in Europe and Made in Italy textiles,” echoed Matteo Mantellassi, CEO at Manteco.

“Free-market access to this vast region presents a growth opportunity for our clients, which would in turn lead to indirect benefits for us,” echoed Mantero. “In the long term, we see this region as an area to explore and analyze, both as a potential alternative source for our raw materials — provided that quality, environmental, and social standards meet our requirements — and as a future market for our textiles and finished products,” he said.

“It’s been impenetrable so far and if you think that Brazil is among the biggest markets for swimwear, there’s a lot of untapped potential there for us,” said Eurojersey’s Crespi. “They are also used to very basic products as a result of protectionist measures,” he said, adding the firm will attend Colombiatex, which begins Tuesday, to test the market.

Albini had already made a preparatory move, establishing the Albini Yarns spinning unit when it acquired a premise in Hungary in 2022. “Having a Made in Europe spinner in-house will be instrumental to leverage the trade deal,” the CEO said.

Barberis Canonico sounded more cautious, pointing to the lower GDP per capita in these countries compared to consolidated markets such as the U.S. or Europe, but cast his hopes when looking at the deal in the long-term.

Bespoke on the Rise

According to several exhibitors, the appetite for bespoke or bespoke-like tailoring has been growing steadily. Although it still represents a small portion of sales, its brisk dynamics are helping to lift the top line.

“It’s a personalization experience that customers are on the lookout for. That’s an answer on how to expand market shares for formalwear,” enthused Reda’s Botto Poala.

Albini concurred, describing it as “a growing business” that represents about 7 to 8 percent of the company’s sales.

“It’s a very niche market,” added Barberis Canonico, offering a slightly less enthusiastic perspective. “But it’s growing in some regions of the world,” he said.

Piacenza said that the division is gaining market shares in the U.S. and Asia. “It’s a very important segment of our offering and we’re expanding the assortments year-over-year,” he said.

The Spring 2027 Fabrics to Keep an Eye On

Linen reigned supreme, embraced as a suiting yarn by many of the formalwear, woolen specialists, done in washed pastels or natural colors.

At Vitale Barberis Canonico it was blended with the 150s wool Intrepid, or in multiyarn versions with wool and silk for breezy summer suits. The mill even debuted a 100 percent linen twill called Intrepid 850 with a crisper finish, befitting lightweight outerwear including casual field and safari jackets.

Botto Giuseppe employed linen in different blends, for summer denim blended with cashmere, with wool, cashmere and silk for a stretch, outerwear- and blazer-intended canvas and in a novelty combination with wool with a herringbone pattern.

Over at Reda, Tecno-Lino was a blend of wool, linen and nylon 6.6 aimed at enhancing the performance qualities of summer outerwear. The new fabric mingled with the tailoring-intended Calyssa blend of linen, wool and cotton in washed pastels.

A sun-bleached palette also dominated the Loro Piana textile collection, hinged on silk rendered in tactile, crisp blends with cashmere or linen. The Summertime family of fabrics combining linen, silk and wool came in numerous soft shades, from lavender to pale blue and taupe, while the occasional patterned textiles, including tartan, were done in undyed cashmere, silk and linen. New iterations of the Art Du Lin fabric family were treated with woolen finishes, while Lin À Vivre doubled down on natural stretch qualities.

Signaling the growing importance of linen, even Manteco, traditionally a wool-predominant mill, worked the yarn in blends with cotton for a raw finish in the Genoa textile and with viscose for Eclipso with a fluid and soft hand.

Cotton specialist Albini 1876 — which is marking its 150th anniversary this year and has developed a special “Legacy Red” in collaboration with the Pantone Color Institute — doubled down on linen, too, with topwear-appropriate openweave versions and in blends with hemp and cotton or cotton and cashmere with textured surfaces, including honeycomb and seersucker. Similar blends were offered in innovative finishes, including those rubbed with salt or washed.

The predominance of solids was evident also in the Mantero collection, where high-shine blends dominated by silk were plied into double satins in rich and shimmering tones such as violet, Majorelle blue and fiery red. The ancient Sabre napping technique was used to achieve subtly patterned textiles, while flocked crepe georgette added a tactile dimension to the collection.

Eurojersey’s spring iterations of its signature Sensitive Fabrics also leaned on textures more than patterns with piquet, waffle, ribbed and micro-check effects achieved via printing.

Skewing more traditional — but still highly textural — Lanificio F.lli Cerruti dal 1881 had fresh wools blended with silk and woven in mélange, mouliné and jaspé textiles with a 3D look bearing subtle patterns, including pinstripes and houndstooth. It also debuted Oxygen, a natural stretch wool fabric.

The Milan-based premium thermal insulation company Thermore unveiled Freedom, a new hyper-stretch padding crafted from 100 percent post-consumer, GRS-certified, recycled PET obtained from discarded plastic bottles and electronic supply, such as plugs, cables and connectors.