The US-China trade war has caused US importers to diversify their sourcing to avoid risk and higher prices. PVH Corp for instance has moved a lot of its production out of the China. Next year, between 10 to 12 per cent of its requirements will be coming out of China down from 30 per cent three years ago. The tariffs have accelerated that movement. PVH Corp recognized what was ahead over the next three to four years and opened up Africa. The company moved to some other locations throughout Asia and tried to position itself with key fabric suppliers throughout the world that would enhance its supply chain.
The slow decline and flight from China has meant gains for many of its Asian neighbors. Till July this year, shipments from Vietnam to the US rose 13.05 per cent while imports from Bangladesh increased 11.53 per cent. Among other suppliers from Asia, shipments from India were up 9.56 per cent, imports from Cambodia gained 6.36 per cent and Pakistan’s shipments rose 9.38 per cent. Significant gains were also seen from Sub-Saharan Africa, as imports from the region rose 22.23 per cent, led by Kenya, Madagascar, Ethiopia and Mauritius.












