US apparel importers shifting toward emerging Asia markets

Apparel importers in the US are increasingly turning to alternative markets as the threat of deeper and broader tariffs loom due to the ongoing trade war with China.

A recent report from online trade media Sourcing Journal revealed garment shipments from the Asia giant experienced a 0.7 percent year-on-year drop in 1Q19 to $5.74 billion while all other major players in the region showed considered gains.

Bangladesh registered the highest jump during the period with slightly more than 16 percent at $1.57 billion while imports from Vietnam, China's main challenger in the apparel sector, rose about 14 percent to $3.23 billion. India exports climbed 12 percent worth $1.16 billion.

Growth is likewise evident in emerging locations with Pakistan shipments ascending 11.5 percent at $355 million. Southeast Asia counterparts Indonesia and Cambodia exported about 6 percent more valued at $1.2 billion and $623 million, respectively.

This came as overall US apparel imports jumped 8.3 percent in the first three months of the year to slightly more than $6 million. During the period clothing exports from the world's largest economy also rose about 5 percent worth $1.5 billion.

Experts, however, believe that China will remain the go-to destination for higher-value pieces because of the country’s technological advantage, production capability and quality of output as reported by the South China Morning Post.

Despite a shift toward lower-cost manufacturing centers such as Vietnam, Bangladesh and the other abovementioned locations, China continues to be the single biggest clothing supplier to the US, accounting for more than 40 percent of the total share.

Last May 10, US president Donald Trump announced he will raise tariffs on $200 billion worth of China imports from 10 to 25 percent. He also threatened to impose an additional tariff on all remaining imports from China valued at about $325 billion.

BAlready, several textile products are affected by the punitive tariffs. Extending this to all goods, however, will bring apparel and footwear into the fray for the first time.