FW
As expected, President Donald Trump announced the imposition of sweeping reciprocal tariffs on April 2. The aim is to address perceived trade imbalances by imposing a baseline 10 per cent tariff on all imports, with significantly higher rates for specific countries. This policy has sent shockwaves through the global textile and apparel (T&A) sector, an industry deeply intertwined with international supply chains.
Tariff breakdown and immediate implications
The new tariffs vary from country to country, reflecting the administration's strategy to match foreign tariffs and counter non-monetary trade barriers. Notably, China faces over 50 per cent tariff; the EU is subjected to 20 per cent; and 26 per cent tariffs are for Japan, South Korea and India. As The Guardian writes, these measures are intended to correct what the US administration describes as decades of unfair trade practices.
Impact on the textile and apparel sector
The fashion industry, heavily reliant on imports from Asia, is particularly vulnerable. Countries like China, Vietnam, and Bangladesh, which are major suppliers of textiles and apparel to the US, are directly affected. Vogue Business says the high tariffs are expected to raise production costs, leading to higher prices for consumers and potential shifts in sourcing strategies.
India's response
India, facing a 26 per cent tariff, is proactively seeking to mitigate the impact by pursuing a bilateral trade agreement with the US. The Apparel Export Promotion Council (AEPC) highlights that 28 per cent of India's textile and apparel exports are destined for the US, with tariff variations ranging from lower duties on cotton fabrics to as high as 33 per cent on man-made fibers. By negotiating a trade deal, India aims to secure more favorable terms and enhance its competitiveness in the US market.
Impact on the US domestic market
The introduction of reciprocal tariffs is expected to have mixed effects on the US domestic market. While the policy aims to protect domestic manufacturers, it will also lead to higher prices for raw materials and finished goods, affecting consumers and businesses alike.
- Higher consumer prices: Due to increased tariffs on imported textiles and apparel, retail prices for clothing and footwear are expected to rise by 15-25 per cent.
- Increased production costs: US-based manufacturers relying on imported fabrics and machinery will see operational costs rise, potentially leading to job losses.
- Shift in sourcing strategies: Brands and retailers may shift to domestic suppliers or explore alternative sourcing from countries in Latin America.
- Retail market struggles: Mid-tier and budget retailers, such as Walmart and Target, which rely on low-cost imports, are expected to face significant challenges.
Market, global reactions and economic forecasts
The announcement has led to immediate market volatility. As per Investopedia, major US stock indices saw significant declines in after-hours trading on April 2, 2025. The SPDR S&P 500 ETF fell by over 2 per cent, the Dow Jones ETF decreased by 1 per cent, and the Nasdaq-tracking Invesco QQQ Trust dropped up to 3 per cent. Companies with extensive global supply chains, such as Apple and Tesla, saw their shares fall approximately 6 per cent and 4 per cent, respectively. Apparel giants like Nike and Lululemon also saw a drop of 7 per cent and over 11 per cent, respectively.
International reactions have been swift and varied. China has condemned the tariffs and is considering countermeasures. As The Guardian reports the EU and Japan too criticized the move and are particularly concerned about the impact on their automotive industries. South Korea is seeking diplomatic resolutions, while India is exploring tariff reductions to ease tensions. Canada and Mexico, though exempt from the latest tariffs due to existing agreements, remain vigilant.
Table: Tariff impact by country and industry
|
Country |
T&A tariff (%) |
Affected sectors |
Expected price increase (%) |
|
China |
50%+ |
Apparel, Footwear |
20-30% |
|
India |
26% |
Cotton, Fabrics |
10-15% |
|
EU |
20% |
Luxury Apparel |
12-18% |
|
Japan |
26% |
Technical Textiles |
10-15% |
|
South Korea |
26% |
Synthetic Fibers |
8-12% |
Therefore, the latest tariffs imposition marks a significant shift in global trade dynamics, with profound implications for the textile and apparel industry. As nations navigate these changes, the sector faces a period of uncertainty, necessitating adjustments and diplomatic engagements to mitigate adverse effects and capitalize on emerging opportunities.
Driven by a consistent demand, the global woven cotton fabric market is poised for continued growth. However, the pace of this expansion is expected to remain moderate over the next decade.
As per a report by Indexbox, the value of global woven cotton fabric market will grow at +1.2 per cent from 2024 to 2035, reaching $122.1 billion by 2035 while the market will grow at a +0.2 per cent CAGR in volume to reach 15 billion sq m by 2035.
In 2024, total global consumption of cotton fabric increased by 1.8 per cent to 15 billion sq m. This consumption was led by at 4.3 billion sq m, followed by the United States at 1.8 billion sq m and India at 894 million sq m. China also dominates in value, with $24.1 billion, while the US market is valued at $11.3 billion. Notably, India's consumption saw the fastest growth among major consumers.
The global production of cotton fabrics increased to 20 billion sq m in 2024, with China accounting for 58 per cent of the total. The US and Pakistan are also significant producers. The production value totaled $136.5 billion.
Worldwide imports of cotton fabrics totaled 4.5 billion sq m in 2024, with Bangladesh, the US, and Italy being the largest importers. Imports mainly consisted of cotton fabrics containing 85 per cent or more cotton, weighing less than 200 g/sq m. Nigeria saw the fastest growth in import volume and value.
Global cotton fabric exports reached 9.5 billion sq m in 2024, with China accounting for approximately 80 per cent of all exports. The value of these exports totaled $19.6 billion. The primary exported product was cotton fabric containing 85 per cent or more cotton, weighing less than 200 g/sq m.
Average import and export prices for cotton fabric have generally declined since 2014. Import prices averaged $3.9 per sq m in 2024, while export prices averaged $2.1 per sq m. Price variations exist across different fabric types and countries. Vietnam has the highest import prices, while Thailand has the lowest. India has the highest export prices, while China has the lowest.
Monforts will present its latest energy-efficient innovations at IGATEX Pakistan 2025, taking place in Karachi from April 24-26. The company will highlight the Universal Energy Tower, a stand-alone air/air heat exchanger that recovers heat from the exhaust air of thermal systems like stenters and Thermex dyeing ranges, delivering up to 25 per cent energy savings. Equipped with an integrated fresh air fan, real-time temperature visualization, and easy-access cleaning features, this modular upgrade enhances efficiency while reducing operational costs.
“Our machines are built for durability, but retrofitting with advanced control and drive technology can significantly improve performance,” says Monforts Area Sales Manager Manfred Havenith. “Compared to new machines, these upgrades are a cost-effective investment with clear benefits.”
Monforts will also showcase the Matex Eco Applicator, an alternative to conventional padding that minimizes drying energy consumption. By precisely applying finishing chemicals and reducing residual moisture to just 35 per cent, the system optimizes stenter efficiency. This makes it ideal for specialty fabrics like hydrophobic/hydrophilic professional wear and over-dyed denim.
Other modular upgrades include a clip opener for Montex stenters, reducing wear and noise, and a 19-inch OS Windows PC interface for modernized machine control. Frequency sonverters are also available to enhance machine efficiency and minimize downtime.
With a strong presence in Pakistan’s textile sector, Monforts continues to secure repeat orders from major manufacturers in Karachi, Lahore, and Faisalabad, assisting them in developing advanced fabrics for global markets. Visitors can meet Monforts specialists at the stand of its partner, Al-Ameen, in Hall 5, A13-A30, at IGATEX 2025.
The Lenzing Group, a leading provider of regenerated cellulose fibers, has announced changes to its Managing Board. Chief Transformation Officer Walter Bickel will step down from operational activities at the end of March 2025, following a mutual agreement with the company’s Supervisory Board.
Bickel, who joined the Managing Board on April 15, 2024, played a key role in advancing Lenzing’s performance program, exceeding planned targets. His leadership helped establish a foundation for long-term efficiency, ensuring the program’s seamless continuation.
“Walter Bickel and his team have made a significant contribution to improving Lenzing’s results. We thank him for his dedication and wish him success in the future,” said Cord Prinzhorn, Chairman of the Supervisory Board. CEO Rohit Aggarwal reaffirmed the company’s commitment to continuing the program with the same rigor.
Lenzing’s performance program focuses on strengthening resilience, agility, and financial stability. It aims to enhance EBITDA and free cash flow through improved profitability and cost efficiency. Efforts to expand into new markets and acquire customers have already boosted sales. Cost-saving measures resulted in over €130 million in savings in 2024, with targeted annualized savings exceeding 180 million from 2025 onward.
Financially, Lenzing achieved a 5.7 per cent revenue increase and a 30.4 per cent EBITDA rise in 2024 compared to 2023. Free cash flow also improved to €167 million, reversing a negative €122.8 million in 2023. The company remains focused on sustaining this momentum to reinforce its position as an industry leader.
Kraig Biocraft Laboratories a leader in recombinant spider silk technology, has secured four registered trademarks for its SpydaSilk brand, marking a significant step in its commercialization strategy. These trademarks provide legal protection as the company expands production and strengthens its market position.
SpydaSilk, a Singapore-based joint venture co-founded by Kraig Labs in 2021, serves as a direct-to-consumer channel for its advanced spider silk materials. The company is pursuing a dual strategy, independently developing the brand while engaging with luxury fashion and high-performance apparel markets.
"The registration of these trademarks reinforces our commitment to building SpydaSilk into a globally recognized brand focused on quality and exceptional material performance," said Kraig Labs’ CEO and Founder Kim Thompson. "With our production scaling up, we are introducing breakthrough products that merge sustainability with performance."
Kraig Labs proprietary recombinant spider silk fibers combine strength, elasticity, and softness, making them ideal for luxury fashion and technical textiles. The company is actively exploring partnerships with industry leaders to integrate its materials into next-generation products.
With production operations expanding, Kraig Labs remains focused on optimizing output and finalizing product designs. Its dual-track approach growing SpydaSilk as an independent brand while collaborating with established industry players is expected to accelerate adoption and drive revenue growth.
Deviating from its traditional store design, Ikea plans to build a 2-km-long store in a linear layout. To be designed by the UK-based architectural firm, Dezeen, this single-floor, narrow store building will be designed in the brand's iconic blue and yellow colors.
Instead of the usual maze-like path, the store will enable customers to walk straight through the its layout, starting with showrooms, then moving through the marketplace, the self-service furniture area, and finally reaching the checkouts. To prevent customers from being fatigued by excessive walking, the retailer will provide a hop-on, hop-off travelator.
The store will also house the famous Ikea food court at the centre alongwith a fast lane’ travelator to provide customers with a direct access instead of without traversing the entire store’s length.
Despite this significant change in layout, the store will retain one the Ikea feature of a store without windows.
This redesign comes in response to growing customer complaints about getting lost in Ikea's traditionally labyrinthine stores.
With the rise of digital maps, GPS and the very real fact that people barely look up from their phone screens anymore, the previous navigation skills seem to be missing, observes Tolga Oncu, Head-Retail, Ikea. Hence, the retailer plans to build a layout that would prevent customers from getting lost in the store, he explains.
Rising by 50 per cent annually, Cambodia's textile exports reached $14 billion last year. The sector plays an important role in Cambobia’s economy, emphasized Sun Chanthol, Deputy Prime at the ‘Cambodia Global Textile Summit 2025,’ that focused on competitiveness and sustainability in the textile sector.
Highlighting Cambodia’s position as a major textile supplier to the US and European markets, Heng Sour, Minister of Labor and Vocational Training, Heng Sour, stated, the summit aims to enhance Cambodia's reputation as a business and investment destination. It will address strategies to improve labor standards, environmental management, and circular economy practices, aligning with global expectations as Cambodia transitions from Least Developed Country (LDC) status.
The summit was also attended by dignitaries from the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC), the International Labour Organization (ILO), and International Economics Consulting. It opened with a welcome address by Canthol who invited global leaders and innovators to discuss the future of Cambodia's garment, footwear, and travel goods industries. Emphasizing on cooperation and a shared vision for prosperity, he reiterated on his government’s vision to establish Cambodia as a premier destination for textile investment and innovation.
Cambodia's strategic location in Southeast Asia and the government's initiatives position the country as a key international manufacturing hub, affirmed Canthol. The 50 per cent annual export growth highlights the success of these efforts, he adds. Cambodia's ASEAN engagement further strengthens its global market integration and regional economic role.
The summit also hosted a panel discussion, ‘Cambodia Garment, Footwear and Travel Goods 2030,’ featuring industry leaders discussing the sector's future. Moderated by Massimiliano Tropeano, the panel discussion was attended by representatives from the Ministry of Commerce, Nike, Goldfame Group, and Li & Fung.
Blending streetwear style with traditional golf apparel, Adidas is re-introducing its iconic Originals trefoil logo to the golf world
Inspired by Adidas’ classic designs and featuring clothing, shoes and accessories for both men and women, the new ‘Originals Golf’ collection is however, tailored for the golf course.
To be launched on April 3, 2025, the collection will help bridge the gap between fashion and golf culture. Emphasizing detailed styling, the range invites golfers to express their individuality on the course. Some pieces from this collection will be worn by Adidas athlete Ludvig Aberg at a major golf tournament.
Highlighting the brand’s history, Dylan Moore, Senior Creative Director, Adidas Golf, notes, the introduction of the trefoil logo's in 1972 and the inspiration drawn from past fashion trends in golf. The apparel line features intricate designs with a color palette of blues, whites, greens, and yellows.
The menswear range includes knit polos with argyle patterns, pleated pants, and quarter-zip sweaters while the women’s collection offers printed trefoil polos, pleated skorts, and cashmere knit sweaters. The collection also introduces new golf footwear style; the Coursecup which is inspired by a 1986 design, and the Gazelle Golf, a first-time golf adaptation of the classic shoe. The range also offers the updated versions of the Stan Smith Golf, Samba Golf, and Superstar Golf shoes.
Masun Denison, Director-Global Footwear, Adidas Golf, emphasizes the brand's effort to combine function and style in golf footwear. The Coursecup and Gazelle Golf models offer enhanced comfort and performance, while maintaining classic Adidas aesthetics, he says.
The collection is completed with premium accessories like leather gloves, headcovers, golf towels, carry bags, and Boston bags. The ‘Originals Golf’ Some pieces will be worn by Adidas athlete Ludvig Aberg at a major golf tournament range will be available exclusively on Adidas.com, the Adidas app, and select retailers.
While the global narrative centers on diversifying supply chains away from China (China Plus One), a subtler, yet potentially more impactful, scenario is unfolding in the textile and apparel sector. Is China, the undisputed giant of global textile manufacturing, strategically maneuvering to keep India, its closest competitor, out of this lucrative shift?
Industry analysts and financial experts say the answer is a resounding yes. A quiet, calculated strategy is underway, where China is subtly reshaping the global textile and apparel production network, ensuring India remains a peripheral player.
The silent chess game
"No noise. No headlines. Just silent industrial chess," asserts Vivek Khatri, a chartered accountant and finfluencer, echoing the sentiment of many observers. While India focuses on policy dialogues and summitry, China is actively redrawing the supply chain map, particularly in labor-intensive sectors like textiles and apparel, where India possesses a competitive edge.
While China's overall inbound Foreign Direct Investment (FDI) has significantly declined, its outbound investments are growing, but not towards India. As an analysts says, "Beijing’s strategy shifts dramatically when it comes to India. Despite India’s population overtaking China’s and its economy growing, Chinese firms are holding back." This disparity is crucial in the textile sector, where investments in new manufacturing facilities and supply chain infrastructure are vital.
China's outbound investment: Data indicates Chinese companies are strategically investing in countries that offer favorable trade agreements and align with their geopolitical interests. These investment often involve establishing or increasing textile and apparel manufacturing bases, but excluding India.
India's FDI challenges: Despite India's demographic advantage and growing market, FDI into its textile and apparel manufacturing sector remains tepid. Industry reports suggest, many international textile firms that consider India ultimately choose other destinations.
Export control: There are reports indicating China is quietly restricting the export of key textile machinery and inputs to India. This could hinder India's efforts to upgrade its manufacturing capabilities.
Textile & apparel specific hurdles
India's ambition to become a major textile and apparel export hub faces several internal and external challenges.
High import tariff is a major one. India's high import tariffs on textile machinery and components increase production costs, making it less competitive compared to countries with more liberal trade policies. The country’s rigid labor laws too, create operational hurdles for global apparel manufacturers accustomed to more flexible environments.
Infrastructure bottleneck is another bugbear. Inconsistent and fragmented infrastructure further complicates logistics and supply chain management. China's supply chain integration is another plus for them. Countries like Vietnam a major textile and apparel exporter benefit from their deep integration with China’s existing supply chains, making them a natural destination for companies relocating from China.
The missed opportunity
The ‘China Plus One’ strategy, designed to diversify manufacturing away from China, has largely benefited Southeast Asian nations like Vietnam and Bangladesh. These countries have seen a significant influx of textile and apparel investments, while India has struggled to capitalize on this shift. In fact as a trade expert points out, foreign investors are increasingly asking if India will seize this rare opportunity or let Vietnam and Mexico solidify their lead.
India's response
Interestingly, India's policymakers are aware of these challenges. The government is offering incentives to boost textile and apparel manufacturing, and actively pursuing trade deals to improve market access. However, addressing the underlying infrastructure and regulatory issues is crucial.
Despite its maneuvers, China faces a dilemma. As noted by the Observer Research Foundation, Chinese textile and apparel firms must decide whether to cede ground to Western competitors in India or risk building up India's manufacturing capacity.
China's actions raise serious concerns about India's ability to capitalize on the ‘China Plus One’ opportunity in the textile and apparel sector. While India possesses the potential to become a global manufacturing powerhouse, it must overcome significant hurdles and counter China's silent strategy to secure its place in the evolving global supply chain. The coming years will be critical in determining whether India can break free from China's shadow and realize its textile and apparel manufacturing ambitions.
Celebrating outstanding export performance in FY2023-24, The Manmade and Technical Textiles Export Promotion Council (MATEXIL), formerly SRTEPC hosted its Annual Export Award Function in Mumbai. The event recognized member companies with 50 awards across various categories within the manmade fiber textiles sector.
Giriraj Singh, the Union Minister of Textiles, graced the event as the Chief Guest, presenting the awards to the winning companies. The function was attended by senior government officials and industry leaders from the textile sector.
A significant highlight of the evening was the unveiling of MATEXIL's new website and trade dashboard, designed to provide comprehensive trade insights on manmade fiber and technical textiles.
Praising MATEXIL, Singh emphasized on the importance of reliable textile data for policy formulation, and stated that the dashboard would address a crucial information gap. He also reaffirmed the government's commitment to boosting textile exports, aiming for a target of $100 billion by 2030.
Bhadresh Dodhia, Chairman, MATEXIL, highlighted the resilience of the manmade fiber textiles sector despite global challenges. He reported a positive growth rate of over 6 per cent, crediting this success to the hard work of exporters and the government's support. He also expressed gratitude to Piyush Goyal, Minister of Commerce and Industry, for his continuous support of the industry.
Shaleen Toshniwal, Vice-Chairman, MATEXIL, emphasized on the importance of the Export Awards in motivating industry players and encouraging new exporters to strive for greater achievements in the global market.
Leading companies such as Reliance Industries, Grasim Industries, D’Décor Exports, Sangam India, Vardhman Textiles, RSWM, and Banswara Syntex were among the award recipients.
The Export Award Function served as a vital platform to acknowledge industry excellence and inspire Indian companies to expand their global presence in the manmade fiber textiles sector.
