27-05-2025
- Business
- South China Morning Post
‘Chips, not shirts': why China's exporters put little faith in Trump's tariff comment
Garment manufacturers across China and Vietnam breathed a small sigh of relief on Sunday, after US President Donald Trump told reporters that the United States was 'not looking to make sneakers and T-shirts'.
But few plan to change their plans based on the president's comments. After weeks of wild swings in US tariff policies, they have learned that Trump could soon change his tune once again.
Businesses in China and Vietnam – the world's two largest clothing export hubs –
are still facing huge uncertainty , with both countries midway through a 90-day pause in US tariffs and trying to strike a deal with Washington to prevent another painful rise in duties.
In that context, recent comments by US officials appear to be good news for the region's garment exporters, as they indicate Trump's drive to make American manufacturing great again will not extend to low-margin sectors.
'We're not looking to make sneakers and T-shirts,' Trump said on Sunday. 'We can do that very well in other locations. We are looking to do chips and computers and lots of other things, and tanks and ships.'
Vietnam's textile exporters are, for now, breathing a little easier
Dan Martin, business adviser in Vietnam
His statement followed earlier remarks by US Treasury Secretary Scott Bessent, who said that America should focus on reshoring precision manufacturing rather than the textile industry.
