U.S. Apparel Imports from China Hit 22-Year Low Amid Tariff Tensions

U.S. apparel imports from China dropped to a 22-year low in May due to increasing tariffs. Retailers shifted sourcing to countries like Vietnam and India. Despite a trade deal, many U.S. companies continue reducing reliance on China, with Southeast Asia's market stake growing significantly.

U.S. apparel imports from China fell to their lowest monthly level in 22 years as of May, according to recent trade data. This decline underscores the impact of significant tariffs imposed by the U.S., which has driven retailers to seek alternatives in Vietnam, Bangladesh, and India.

China, long the leading exporter of clothing to the U.S., has seen its market share shrink due to escalating trade tensions between the two nations. With U.S. tariffs reaching as high as 145% under President Donald Trump, companies have been compelled to diversify their sourcing strategies away from Chinese factories.

Trade experts note that the pattern of declining imports from China is not new. U.S. interest in Southeast Asian production has been rising since mid-2023, as reflected by heightened demand for factory inspections in the region. The ongoing shifts suggest enduring changes in supply chain dynamics, which may face further challenges as temporary tariff pauses expire.

(With inputs from agencies.)