U.S. cotton exports to China dropped by nearly 90 percent year-over-year in the first half of this year, according to data from the London Stock Exchange Group (LSEG). Meanwhile, exports to Pakistan and Turkey rose, and shipments to Vietnam nearly tripled.
The apparel industry has been steadily shifting production for the U.S. market from China to South and Southeast Asia, where labor costs are lower. This shift accelerated in the first half of the year, driven in part by U.S. tariffs. Washington is now closely watching for transshipment practices, where factories route goods through third countries to bypass higher tariffs. Facilities heavily dependent on Chinese inputs may be flagged as engaging in such practices.
With U.S.–China trade negotiations stalled, the apparel sector remains concerned about the risks of over-reliance on Chinese supply chains.
Source: AAStocks, September 3, 2025
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