Continuing the declining trend seen in recent years, US textile and apparel (T&A) exports fell by 2.7 per cent Y-o-Y in value to $11.2 billion during H1 FY25 spanning January-June 2025.
The decline wasn't uniform across all product types. While apparel exports increased in volume, fabric and yarn exports declined, suggesting a shift in the composition of US exports.
A significant factor contributing to this volatility and decline is uncertainty surrounding tariff policies. Recent tariff hikes, particularly those targeting a major export partner like India, have been cited as a cause for concern among exporters, leading to a halt in some production and orders.
In contrast to the exports decline, the US’ T&A imports rose by 4.3 per cent in value to $51.4 billion during the period. This indicates a growing trade deficit for the sector.
Despite the overall decline, T&A exports by some countries like Bangladesh, Vietnam, and India to the US saw robust growth in H1, FY25. This highlights a shift in global supply chains and sourcing patterns.
In summary, the US textile and apparel sector faced headwinds in H1, FY25, with a notable decline in exports driven by factors like trade policy uncertainty and a shift in global market dynamics. At the same time, imports into the country grew, widening the trade deficit in this sector.
