Chinese textile manufacturers are shifting to the US. While labor costs are greater than that of China, energy, land and raw materials are cheaper in the United States. Therefore, total cost of production is less. Chinese manufacturers find the production cost per ton of textiles is 25 per cent lower in the US.
The cost of labor in China has been rising and other countries like the US could potentially do it better and cheaper. Labor would still be a lot more expensive. But energy costs could be notably less. These capital intensive textile mills have little labor costs and relatively cheaper energy prices.
Moving closer to the US benefits not only the upstream US supplies of textile components but also boosts the competitiveness of cut and sew operations in the NAFTA and DR-CAFTA regions, the US textile industry’s most important export markets. Moreover, tariffs would encourage more R&D focus on automating apparel assembly, technology showing very promising potential to re-shore jobs.
Unless China begins to automate its processes and to reduce its costs, it is inevitable more clothing makers will relocate to the US. And that will mean new investments in factories and machinery — if the tariffs were to go into place.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Industrial automation and AI take center stage at Garment Technology Expo (GTE) …
The conclusion of the 39th Garment Technology Expo (GTE 2026) in Greater Noida has signalled a decisive shift in South... Read more
The End of Geographic Masking: Shein and peers reclaim Made in China as a strate…
The era of the corporate ghost is ending. For years, the world’s most aggressive retail disruptors operated under ambiguity, relocating... Read more
$120 Crude, Zero Margin: How India’s textile hubs are paying the price
For India’s textile clusters, the current West Asia crisis is no longer a distant geopolitical headline. In Surat’s polyester corridors... Read more
Luxury under pressure as stagflation and geopolitics redefine the winners’ circl…
The 2025 earnings for Europe’s listed luxury majors have delivered a verdict that has far more implications than the prevailing... Read more
Luxury resale goes global, sneakers, handbags, archival fashion redrawing border…
The luxury resale market in 2026 is no longer a monolithic global block. According to the RB Insights January 2026... Read more
China out but can India deliver? The realities of the global sourcing shift
With the US imposing a flat 15 per cent tariff on Chinese imports under Section 122 as of February 2026,... Read more
Luxury in Retreat: Why the aspirational consumer is gone for good
The global luxury industry is confronting an unprecedented situation. The active consumer base, which peaked at 400 million in 2022,... Read more
The Invisible Bleed: How a single chemical is slowing India’s apparel machine
The global fashion industry has spent the better part of the past two years obsessing over visible disruptions viz. volatile... Read more
The Closet Paradox: How ‘nothing to wear’ is driving global overconsumption
In an era of overflowing wardrobes and instant fashion gratification, a striking paradox has emerged: the more clothes we own,... Read more
US trade rulings and labor slowdown reshape 2026 cotton supply chains
The global cotton industry is entering a period of adjustment, shaped by legal rulings, trade policy recalibrations, and a softening... Read more












