On April 7, 2025, the China National Textile and Apparel Council (CNTAC) issued a statement firmly opposing the US tariff hikes on Chinese goods. This is not a routine industry reaction but the most direct and official response from the textile sector to the escalating trade war. For an industry with annual exports exceeding $300 billion, every tariff adjustment affects tens of thousands of factories and millions of workers.
Background
The statement was triggered by the US government's announcement in early 2025 to impose new tariffs on various Chinese goods, including textiles and apparel, with significant rate increases. CNTAC, representing over 20,000 member companies, conveyed not only collective industry anger but also deep concern over disrupted supply chain stability. Public customs data shows that in 2024, China's textile and apparel export growth slowed to 2.1%, with some categories like cotton garments seeing negative growth in the US market.
The US remains the single largest export destination for Chinese textiles, accounting for about 16% of total exports. The new tariffs are expected to accelerate order shifts to competitors like Vietnam and Bangladesh. In 2024, Vietnam's textile export growth exceeded 8%, with a significant portion attributed to diverted orders from China.
Industry Impact
The tariff shockwave first hit textile clusters in the Yangtze River Delta and Pearl River Delta. In fabric hubs like Keqiao (Shaoxing) and Shengze (Jiangsu), foreign trade companies reported a 15-20% drop in US customer inquiries since Q1 2025. Many small factories have begun retooling production lines to serve European, Middle Eastern, or domestic markets instead. This forced shift is challenging due to differing fabric standards, color preferences, and delivery cycles.
For upstream chemical fiber and yarn producers, the impact is more profound. Reduced end-apparel orders have led to shrinking demand for polyester, nylon, and other raw materials. Industry data shows that in Q1 2025, capacity utilization for domestic polyester filament dropped 4 percentage points year-on-year, with some mills holding over 30 days of inventory. Even companies without direct US exports cannot escape the contagion.
Over a longer horizon, US-China trade friction is reshaping global textile trade patterns. CNTAC's statement essentially seeks policy breathing room. While it did not specify countermeasures, industry insiders expect the government to adjust export tax rebates and ramp up support for 'Belt and Road' markets. Companies are also accelerating automation to reduce labor cost share and improve resilience against tariff volatility.