Effects Of US Tariffs On Garment Imports From China & What Comes Next

Following the US government's announcement of new tariffs against all imports from China, it has become very difficult for US importers to stay in business. Social media and news platforms are filled with horror stories of importers who have had their entire shipments returned due to the incredibly high tariffs imposed. On the ground, imports from China, regardless of their nature, being white label clothing or private label clothing, cost almost twice as much as the order values due to the tariffs.

What is being touted as a trade war has left many businesses in shambles, and considering this is still an ongoing issue, a resolution seems far from reality. So, as a garment importer or brand based out of the US, what should you do now? The best way to move forward is to look into alternative import options. But before that, let’s unpack the whole tariff scenario and understand where the news stands as of now.

What’s The Ground Reality of US Tariffs on China on US Garment Importers?

The US imports over 90% of the garments it needs from foreign destinations. China itself delivers up to 30% of the entire country’s garment demands. The US tariffs have had a devastating impact on US garment importers who depend on Chinese manufacturing.

From luxury brands to small-scale niche brands, the effects of US tariffs have been noticed throughout the industry. Research has shown that children’s shoes that used to cost around $26 before the tariffs now cost upwards of $40 after the tariffs. This change has been noticed across all wardrobe items in America.

Here’s a breakdown of the effects the tariffs have had on American businesses.

Almost Double Shipment Costs

As per the ‘Liberation Day’ tariffs announced by the US government, at one point, the tariffs imposed on imports from China were over 100%. This led to bulk orders placed by US importers, which were in production or transit, suddenly seeing a huge price spike. Due to the tariffs, the cost of their shipment doubled overnight, which even led to some businesses having to shut their doors.

As of June 2025, the tariffs have currently been paused and restored at 30% till the end of August, with full tariffs said to come into effect from September 2025. In such cases, orders that are already in production or transit will get a huge price upsurge, which is expected to hit American importers significantly. It also directly ties into the next point.

Pressure on Manufacturers and Smaller Brands

Not everyone is just importing readymade garments from China to sell in the US. Many brands have built their own manufacturing units in China to lower manufacturing costs. Due to the current tariffs, these brands are suffering the most. Considering the brands are manufactured in China, they are generally the ones selling at a lower profit margin in bulk amounts. Suppliers across the US and other countries are forcing these brands to absorb the tariff costs on their end, leading to these garment manufacturers having to close shops.

Supply Chain Pressure

Due to the current pause in effective tariffs, most brands and importers in the US are forcing and negotiating for the early delivery of orders before the end of August. This is done to reduce the brunt of the tariffs. However, even at 30%, it is taking a significant toll on importers and their operational costs. Even with the pressure on manufacturers in China, there’s no guarantee for order delivery timelines, as shipping can take weeks to months, with no explanation at all.

What Comes Next?

Considering the hostile terms between the US and China currently, there’s no expectation of a resolution of tariffs in the near future. Despite the court cases against the tariff announcements, they are still expected to come into full effect from September. So, the best way for you to bypass the tariffs is to find suppliers or manufacturers in other countries. There are many great options, like India and Bangladesh, that are not subject to high tariffs like China and still have reasonably skilled labor to keep production costs in check.

Conclusion

If you’re looking for Indian alternatives for Chinese manufacturers, you can start with CheerSagar. They are among the best garment manufacturers in India, with decades of experience both as a manufacturer and textile export company in India. Check out the website to learn more about the experience and services offered.

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01 Sep

Effects Of US Tariffs On Garment Imports From China & What Comes Next