US tariffs on imports from China will impact companies in the US, and consumers too. Since it is not yet clear what percentage of the tariffs the companies would pass on to consumers. There might be a split in terms of the company taking part of the hit and passing on part of the cost to consumers as well. Starting from January 1, the tariffs will go from ten per cent to 25 per cent.

China is the largest supplier of textile and apparel to the US market, accounting for about 40 per cent of American imports in the sector. The industry relies on sourcing from China to provide American consumers with affordable and varied choices.

Chinese exporters are feeling the pain as trade tensions between the world’s two biggest economies worsen. China’s surplus with the US has risen to a record while its overall export growth has slowed.

With further large-scale US tariff measures imminent, Chinese exporters will be hit hard and China’s GDP growth rate in 2019 is likely to be dented.

If the US keeps ramping up its tariff measures against China, the export sector will face a long, hard road ahead despite government measures to mitigate the impact.