Analysis Report on Tariff Impact of China Clothing Industry in May 2025

2025-05-16

First, the status quo of the industry: export toughness under the heavy pressure of tariffs
① Export data performance
In the first quarter of 2025, the export volume of textiles and clothing reached US$ 66.29 billion, up 1% year-on-year, with a monthly increase of 12.9% in March. The growth is mainly due to the strategy of "grabbing export" and the low cardinal utility. The United States has imposed a cumulative tariff of 145% on China's textiles and clothing, and the comprehensive tax rate of some categories is as high as 180%, and the tariff on cross-border small parcels has increased to 120% simultaneously.
② Structural changes of orders
Orders to the United States dropped sharply by 50%, and low-cost countries such as Vietnam and Cambodia undertook transfer orders;
The profit margin of enterprises has been severely compressed, and small and medium-sized manufacturers are facing the risk of accelerating clearing.

Second, the industrial chain response strategy
① Cost control and supply chain reconstruction
Upstream raw material suppliers reduced inventory production, and Zheng Mian prices continued to decline due to shrinking demand; Downstream enterprises adopt the "consignment mode" to reduce inventory risk, and some of them turn to the domestic market.
② Diversified market layout
Expand emerging markets such as Southeast Asia and the Middle East to avoid single market dependence; Improve the R&D investment of functional clothing (such as sun-protective clothing and outdoor equipment) to stimulate the growth of domestic demand.

Third. Future trends and suggestions
① Short-term challenges
The tariff policy may continue until the end of 2025, and it is expected that the year-on-year growth rate of exports will fall back in the second quarter.
② Long-term transformation direction
Promote the upgrading of intelligent manufacturing and shorten the development cycle of new products; Strengthen brand building and transform from OEM to "design+marketing" barbell structure.

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