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The "Danger" and "Opportunity" of the US tariff Escalation in the Textile Industry

On the chessboard of global trade, the tariff stick of the United States is like a sudden storm, bringing unprecedented challenges to China's textile industry. However, as the old saying goes, "A blessing in disguise." This adversity has also brought unexpected opportunities to China's textile industry and freight market.

The United States has upgraded tariffs: from 54% to 104%

On April 9, 2025, the US government announced a tariff of up to 104% on Chinese goods exported to the US. This decision officially took effect at 00:01 Eastern Time on April 9.

Previously, on April 2nd, the United States announced the imposition of a 10% benchmark tariff on all Chinese goods exported to the US and an additional 34% tariff on Chinese goods. The combined tariff rate has now reached 54%. This tariff upgrade has further intensified the tension of the trade friction between China and the United States.

The United States claims that this tariff adjustment is in response to the 34% tariff imposed by China on American export products. However, this unilateralist act not only seriously violates international trade rules, but also has caused a huge impact on the global industrial chain and supply chain.

The "Danger" and "Opportunity" of the Textile Industry

The impact of the additional tariffs imposed by the United States on China's textile industry is profound. Data shows that from January to February 2025, the cumulative export value of China's textiles and apparel decreased by 4.5% year-on-year. Among them, textile exports dropped by 2%, and apparel exports declined by as much as 6.9%. The increase in tariffs has significantly reduced the price competitiveness of Chinese textiles in the US market, and some orders have begun to shift to low-cost countries such as Vietnam and Cambodia. Small and medium-sized enterprises are the first to be hit. The increase in tariffs has led to higher costs, and small and medium-sized enterprises with lower profit margins find it difficult to bear the tariff costs. The industry is expected to accelerate the clearance process.

However, in such adverse circumstances, the domestic textile industry has seen a glimmer of hope. The additional tariffs imposed by the United States have led to a decline in the cost-effectiveness of some high-end textile materials that rely on imports, providing an alternative space for domestic high-end textiles. The domestic production capacity of PA66 is in a stage of significant growth. Although there is still a gap in quality compared with the leading overseas enterprises, external pressure has instead become an opportunity to accelerate industrial upgrading.

Enterprises have also begun to respond actively, sharing costs and buffering the pressure of tariffs through the layout of the entire industrial chain. Domestic textile enterprises have also made breakthroughs in the research and development and production of high-end materials. For instance, companies like Xiamen Dangsheng and Jiangsu Qingyun have broken through the flash spinning technology. These technological breakthroughs not only improved the product quality, but also enhanced the competitiveness of domestic textiles in the international market.

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