After the Trump administration retakes office in 2025, it will continue its consistent "America First" policy and reshape the global trade pattern through additional tariffs and other means. Among them, the textile and apparel industry, as the "hardest hit area" of trade friction, faces multiple challenges, such as rising costs, supply chain reconstruction, and market transfer. This article will deeply analyze the impact of the new tariff policy and explore the way out for the industry.

1. The Core Content of the Tariff Policy

The Trump administration imposed a 10% tariff on all Chinese goods exported to the United States from February 1, 2025. Further, it imposed an additional 10% tariff in March on the grounds of fentanyl, with a cumulative tax rate of 20%. In addition, the US government also plans to impose tariffs of up to 60% on some Chinese goods (such as textiles) and cancel the tax-free policy for small packages worth less than US$8001.

These policies are not only aimed at China but also affect major trading partners such as Mexico and Canada. For example, the United States imposes a 10% tariff on Canadian energy products and a 25% tariff on Mexican goods and plans to implement a "reciprocal tariff" strategy, that is, adjusting the US tax rate according to the tariff level of trading partners.

2. Direct Impact on the Global Textile and Apparel Industry

Cost Pressure Surges, Profit Margins Shrink

China's exports to the United States account for 28% of the total US imports. After the imposition of tariffs, the export costs of enterprises have risen sharply. Taking low value-added products as an example, after combining tariffs and freight costs, the profit margin may be squeezed to less than 5%, and some small and medium-sized enterprises face the risk of bankruptcy.

Accelerated Relocation of Supply Chains

To avoid high tariffs, US importers have transferred orders to Southeast Asian countries such as Vietnam and Cambodia. With the tariff advantage of 16 free trade agreements (zero tariffs on US textiles), Vietnam has attracted a large number of Chinese textile companies to invest and build factories. For example, the Jiansheng Group has invested in building a cotton socks production base in Vietnam.

Market Structure Reconstruction

The decline in dependence on the US market has forced Chinese companies to explore new markets. In 2024, China's textile exports to the "Belt and Road" countries accounted for 55%, the ASEAN market grew by 6.8%, and emerging markets such as the Middle East and Africa became new growth points.

3. Enterprise Response Strategies and Industry Transformation

Diversified Market Layout

Enterprises are accelerating the expansion of emerging markets such as Southeast Asia, the Middle East, and Africa and are directly reaching consumers through cross-border e-commerce. For example, SHEIN has improved its global sales efficiency through overseas warehouses and the "explosive order plan", while Nantong Home Textiles has used cross-border industrial parks to develop the Middle East market.

Technological Innovation

Develop functional fabrics (such as antibacterial and UV protection) and green products to meet the needs of high-end markets in Europe and the United States.

Supply Chain Flexibility Construction

Enterprises circumvent tariffs through the "Chinese raw materials + overseas processing" model. For example, semi-finished products are shipped to Vietnam for processing and then exported to the United States, or production bases are directly established overseas. At the same time, digital supply chain management (such as big data demand prediction) reduces inventory risks.

Policy and Industry Coordination

The Chinese government has introduced policies such as tax cuts and fee reductions, export credit insurance, etc., to support enterprises. After the RCEP came into effect, the rules of origin accumulation in the region promoted the integration of the industrial chain, and China's textile exports to ASEAN increased significantly.

4. Long-Term Trends and Industry Outlook

Regional Trade Agreements Dominate the New Pattern

Asian countries deepen cooperation through RCEP and China-ASEAN Free Trade Agreement and reduce dependence on the United States. Experts at the Boao Forum pointed out that regional coordination and multilateralism are the key to coping with tariff shocks.

Green and Digital Transformation

The EU's "Corporate Sustainability Due Diligence Directive" and US environmental regulations force the industry to upgrade. Chinese textile companies are accelerating the application of waterless dyeing technology and using cross-border e-commerce to achieve full-chain digitalization.

Industry Integration and Brand Rise

High-cost pressure drives industry reshuffle, and companies with technological advantages and brand influence will dominate the market. It is estimated that by 2025, 40% of China's textile production lines will be automated.

Conclusion

Although Trump's tariff policy has exacerbated the short-term shocks in the global textile and apparel industry, it has also spawned long-term opportunities for technological innovation, market diversification and supply chain resilience. Faced with challenges, Chinese companies need to achieve a leap from "world factory" to "global brand" in the face of headwinds through policy support, technological upgrades and global layout. Future competition is not only a contest of costs, but also a competition of industrial chain integration and sustainable development capabilities.