On April 7, 2025, the China National Textile and Apparel Council (CNTAC) publicly stated its firm opposition to the US's proposed tariff increases on Chinese textile and apparel products. This statement is more than a diplomatic gesture; it is a collective warning from the domestic industry about deteriorating trade conditions. China's textile and apparel exports to the US have long accounted for 15% to 18% of total exports, and the proposed tariffs would directly impact order stability in major export hubs like the Yangtze River Delta, Pearl River Delta, and Shandong.
Background
The CNTAC statement was released at a sensitive time of renewed global trade tensions. The statement argued that the US's proposed tariffs lack factual basis and would severely damage mutual trust in Sino-US textile trade. Notably, the statement came from the industry's highest association rather than individual companies, signaling two things: first, the industry has reached a unified position; second, companies may face broader risks of order delays or cancellations.
Historically, textile and apparel products have been included in tariff lists since 2018, but previous rounds were partially mitigated through exemptions or transshipment. However, the 2025 context is different: while global inflationary pressures have eased, consumer demand recovery remains weak, and inventory cycles are not fully cleared. Any additional tariff could be the final straw for purchasing intentions.
Industry Impact
Export Structure Under Pressure
According to CNTAC data, China's total textile and apparel exports in 2024 were approximately $310 billion, with the US accounting for about 16%. This implies a potential impact on over $50 billion in trade. If tariffs rise to 25% or higher, profit margins for low-value-added categories (e.g., basic knitwear, cotton trousers) will be eliminated, accelerating order shifts to Vietnam, Bangladesh, and others.
Upstream Raw Material Transmission
The tariff shock will not stop at finished goods. Cotton and chemical fiber prices have shown volatility expectations. Domestic cotton spot prices fell about 2% in the week following the statement, reflecting market anticipation of demand contraction. For fabric hubs like Shengze and Keqiao, declining foreign orders will force a faster pivot to domestic markets or Belt and Road countries.
Divergent Corporate Responses
Leading companies with overseas production bases (e.g., Southeast Asia) and brand premiums are more resilient, while numerous small and medium original equipment manufacturers face survival challenges. The CNTAC statement buys policy-level time, but companies must still make substantive adjustments in supply chain diversification and digital cost reduction.
Practical Recommendations
For Buyers - Reassess supplier geographic concentration; include Chinese capacity alongside Southeast Asian and South Asian alternatives in annual procurement frameworks. - Monitor tariff exemption list updates; lock in inventory or negotiate price protection clauses for products already targeted. - Establish closer long-term agreements with top Chinese suppliers to leverage their scale in hedging tariff volatility.
For Exporters - Accelerate market diversification, focusing on the Middle East, Africa, and RCEP member countries to reduce single-market dependence. - Utilize CNTAC's policy coordination capacity to participate in collective industry advocacy for tariff exemptions or delays. - Enhance product value (e.g., functional fabrics, eco-certifications) to strengthen bargaining power while controlling costs.
Global textile trade stands at a new watershed. The CNTAC's opposition is not just a diplomatic protest but a clarion call for industry self-rescue. In the next 12 months, exporters must balance policy games with market adjustments, while buyers should build more resilient supply networks in advance.