Tariffs drive US clothing imports from China to 22-year low in May
China has for years been the biggest exporter of clothes to the US, but its share of the US apparel market has fallen as trade relations between the world's two biggest economies soured.
US President Donald Trump ratcheted tariffs up to as much as 145% in April, driving more US retailers to reduce purchases from Chinese factories in favor of Vietnam, Bangladesh, India, and elsewhere.
"The sharp decline in US apparel imports from China in May 2025 was anything but natural," said Sheng Lu, professor of fashion and apparel studies at the University of Delaware.
The US imported $556 million worth of clothing from China in May, down from $796 million in April, and the fourth straight month of declines, according to US International Trade Commission (USITC) data. The last time monthly imports were lower than that was May 2003.
Earlier in the year, anticipating Trump's tariffs, US retailers stocked up: the value of apparel imports from China in January was $1.69 billion, up 15% from the $1.47 billion a year earlier.
Despite a recent trade deal between the US and China, most leading US fashion companies still plan to reduce their China exposure further, if not totally move out of the country, Lu said.
The same pattern is visible in demand from US retailers for factory inspections. Auditing firm QIMA said its data, based on thousands of inspections and audits worldwide, shows US sourcing from China fell by nearly a quarter in the second quarter from a year earlier, while demand in Southeast Asia grew 29%.
Another early winner was Mexico, according to the USITC data. In May the US imported $259 million worth of apparel from its southern neighbor, up 12% from a year ago.
QIMA said in its note that the shift out of China is not new and Southeast Asia's share of US sourcing has been steadily growing since mid 2023.
"While the US administration's tariff policies took several sharp turns during Q2 2025, the procurement patterns of US-based brands and retailers have stayed largely within the bounds of long-standing trends established before this year's escalation," QIMA said.
The coming months may put US supply chains to a new test, QIMA said, as the temporary pause on tariffs for most non-China countries will soon expire, coinciding with the kick-off of holiday season procurement.— Reuters
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