Insight Report 6 minutes Premium

US-China Trade Issues: The Battle for Apparel

Executive Summary

US-China trade issues continue to affect different industries. In this report, we review recent developments in the tariff dispute and the impact on apparel.

  • A June 18 phone call between US President Donald Trump and Chinese President Xi Jinping to discuss meeting during the G20 summit gave everyone hope for a resolution.
  • While tariffs have pushed up the average retail price of China-sourced apparel, in theory eroding China’s competitive edge, the country still dominates US apparel sourcing.
  • Apparel brands are diversifying sourcing sites away from China, adopting a “China plus Vietnam plus many” strategy.

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