According to the US Department of Commerce, US apparel imports from China dropped from almost 30 per cent in value to 20 per cent in the first half of 2020. The erosion of the Chinese position in the US fashion supply chain partially reflects growing tensions, as American fashion firms are forced to reduce their exposure to Chinese suppliers in response to the trade war, Coronavirus pandemic and deteriorating bilateral relations.

A survey by the United States Fashion Industry Association, which polled 25 executives from leading fashion companies in the second quarter, found while most imported from a mixture of countries, including China and Vietnam, 29 per cent said they sourced more from Vietnam this year. Concerns over forced labor within the clothing manufacturing industry in China’s far western Xinjiang Uygur Autonomous Region has been the latest obstacle holding back US imports of apparel and other textile goods from China.

Worsening ties between the US and China has also accelerated the move of Chinese manufacturers and exporters to shift some productions out of China to nearby countries to take advantage of lower labour costs and avoid American import tariffs. While US fashion firms have been reducing their reliance on Chinese products for several years, it will remain a key base for sourcing in the near future, particularly after the coronavirus pushed many firms to cut costs dramatically. Around 70 per cent of respondents to to survey expected to decrease their sourcing from China through 2022.