The textile supply chain has shifted, with U.S. cotton exports to China decreasing by 90%, while exports to Vietnam have tripled.

According to data from LSEG, in the first six months of the year, shipments of cotton from the U.S. to China decreased by about 90% compared to the same period last year. Meanwhile, U.S. cotton exports to countries such as Pakistan and Turkey increased, particularly to Vietnam, where the volume nearly tripled. In April 2025, President Donald Trump imposed retaliatory tariffs of up to 145% on Chinese goods. This tariff was later reduced to 30% after the two sides reached an agreement in May. However, with many uncertainties about the direction of future negotiations, production systems heavily dependent on China are becoming a greater risk. The apparel industry has been shifting production serving the U.S. market out of China in recent years, prioritizing countries in South Asia and Southeast Asia with lower labor costs. This trend appears to have accelerated in the first half of 2025 amid escalating U.S.-China tensions and tariff concerns. Countries in South Asia, Southeast Asia, ...