On April 7, 2025, the China National Textile and Apparel Council (CNTAC) issued a statement firmly opposing the US government's proposed new round of tariffs on Chinese textile products. This is not an isolated incident but the latest escalation in Sino-US textile trade friction. According to China Customs data, China's total textile and apparel exports in 2024 reached $301 billion, with exports to the US accounting for approximately 17%. If new tariffs are imposed, they would directly impact this trade corridor valued at over $50 billion.
Background
The proposed US tariffs cover a broad range from yarn and fabric to finished garments, aiming to further erode the cost advantage of Chinese textiles. CNTAC's statement explicitly points out that this violates WTO rules and will severely damage the stability and efficiency of the global textile supply chain. The timing is critical: 2025 marks a period when the global textile industry is recovering from the pandemic but faces dual pressures from geopolitical tensions and inflation, making any policy shock likely to trigger chain reactions.
China's textile industry is no stranger to tariff barriers. During the 2018 Sino-US trade war, Chinese textile exports to the US saw a decline of about 15%, but subsequently recovered through market diversification and industrial upgrading. However, the current situation is more complex: production capacity in Southeast Asia and South Asia is expanding rapidly, and US tariffs combined with low-cost competition from these regions could accelerate order transfers.
Industry Impact
From a supply chain perspective, the tariff impact will be asymmetrical. Upstream chemical fiber and yarn enterprises, due to their intermediate product nature, will suffer relatively less in the short term. However, downstream garment OEM factories, especially those with profit margins of only 3%-5%, face the risk of order collapse and zero profit. Industrial clusters like Shaoxing Keqiao and Nantong home textiles, heavily reliant on US orders, could see partial capacity idling and job losses.
Notably, US tariffs may also force Chinese textile companies to accelerate overseas expansion. Leading firms like Shenzhou International and Huafu Fashion have already set up production bases in Vietnam, Cambodia, adopting a 'Chinese design + overseas manufacturing' model. But small and medium enterprises (SMEs) struggle with funding and channels for rapid relocation. CNTAC's statement essentially seeks policy buffers and negotiation space for these SMEs.
For buyers, tariff uncertainty means increased supply chain cost volatility. Brands and retailers may oscillate between 'stockpiling early' and 'order diversification,' driving up shipping and warehousing costs simultaneously. Industry data shows that container freight rates from China to the US West Coast rose by about 20% in Q4 2024 due to tariff expectations.