On April 7, 2025, the China National Textile and Apparel Council (CNTAC) issued a public statement firmly opposing the US government's proposed new round of tariffs on Chinese textiles. This is the first explicit stance from the most representative industry organization in China's textile sector since the renewed escalation of Sino-US trade friction in 2024. The statement argues that such unilateral tariffs will not resolve the US trade deficit but will severely destabilize the global textile supply chain.
Industry data shows that China's textile and apparel exports had already slowed in 2024, with some low-value-added orders shifting to Southeast Asian countries like Vietnam and Bangladesh. If the new tariffs are implemented, they will directly increase export costs for Chinese textiles, eroding their price advantage in the US market. For small and medium-sized textile enterprises reliant on US orders, this is a severe blow.
Background
The tariff threat comes amid ongoing tension in Sino-US trade relations. The US Trade Representative has repeatedly signaled plans to raise tariffs on some Chinese textile products from the current 7.5%-15% to over 25%. CNTAC's statement was released amid rising expectations of such a move. It emphasizes that China's textile industry has always followed international rules and market principles, and that unilateral US tariffs lack factual basis.
Notably, the statement does not specify countermeasures but hints at legal and WTO frameworks to defend industry interests. Historical data from the 2018-2019 trade war shows that China's textile exports to the US fell by about 15%, while Vietnam's exports to the US grew by over 20% during the same period. This indicates that tariffs are indeed reshaping global textile trade flows.
Industry Impact
The impact of tariff escalation on the domestic textile chain will be multi-layered. Upstream chemical fiber and yarn enterprises may face order losses, particularly in weaving hubs like Shengze and Keqiao, where capacity utilization could decline further. Midstream fabric and garment processing firms will face a tough choice between raising prices and losing orders. Downstream foreign trade companies will grapple with higher compliance costs and exchange rate risks.
From a regional perspective, key production clusters such as Nantong's home textiles, Guangdong's garment processing, and Shaoxing's dyeing have a 15%-25% dependence on US exports. If tariffs rise to 25%, these exporters will need to accelerate market diversification—toward the EU, ASEAN, and Belt and Road countries. However, this transition takes time, and the order gap cannot be filled immediately.
Another critical variable is the 'de-China' trend in supply chains. Some international brands are already asking suppliers to diversify production to Southeast Asia or South Asia to avoid tariff risks. CNTAC's statement serves as a warning: if tariffs become permanent, China's position as the global textile manufacturing center may be gradually eroded.
Practical Recommendations
For Foreign Trade Companies - Immediately assess the tariff sensitivity of existing US orders; consider renegotiating or shifting orders to Southeast Asian factories for those with profit margins below 10%. - Accelerate expansion into EU, RCEP member, and African markets, leveraging China's zero-tariff agreements with ASEAN to reduce export costs. - Establish tariff risk hedging mechanisms, such as using forward exchange contracts and purchasing trade credit insurance to mitigate currency and bad debt risks.
For Buyers - Re-evaluate global procurement strategies, positioning China as a core supplier for high-value fabrics and fast-response orders, not as the sole source. - Include tariff-sharing clauses in supplier contracts, specifying that if tariffs change beyond a certain threshold, both parties adjust prices proportionally. - Monitor opportunities from China's textile upgrade: functional fabrics, recycled fibers, and smart textiles—even with tariffs, these remain irreplaceable.
CNTAC's statement is both a stance and a wake-up call for the entire supply chain. In an era of normalized tariff disputes, relying solely on low-cost exports is no longer viable. For industry players, the priority now is not waiting for policy reversal but proactively adjusting product portfolios and market strategies.