A direct result of the ongoing tariffs that have pushed retailers to diversify their supply chains, US apparel imports from China hit a 22-year low in May. This significant decline highlights the lasting impact of trade tensions, prompting a notable shift in sourcing toward countries like Vietnam, Bangladesh, and India.
Historically the dominant apparel exporter to the US, China has seen its market share diminish as a consequence of escalating US tariffs, some reaching as high as 145 per cent under President Donald Trump. This has compelled American companies to actively reduce their dependence on Chinese manufacturing.
Trade experts indicate that this trend of decreasing imports from China isn't new. US interest in Southeast Asian production has been on the rise since mid-2023, evident in the increased demand for factory inspections across the region. These ongoing shifts suggest fundamental and enduring changes in global supply chain dynamics, changes that could face further challenges as temporary tariff pauses eventually expire.
