In an unusual trend, US textile and apparel imports surged almost 31.1 per cent in November 2021. Most of this growth could be attributed to strong demand and holiday season. It could also be a result of the combined effects of price inflation and late arrival of goods due to shipping crisis, says a CCF Group report. The import volume of US textiles and apparels surged 32.6 per cent year-on-year to 9.05 bn sq. mt during the month. Compared to November 2019 also, growth volume was much larger while value was lower.

While the import volume of US textiles and apparels surged 31.9 per cent to 85.34 billion meters from January to November 2021 their value growth was relatively lower at 15.9 per cent compared to the same period in 2019.

China’s shipments to the US decline

A silver lining amongst dark clouds proved to be US’ declining imports from China. Compared to 2019, US’ imports from China decreased 15.9 per cent during period. This also led to a decline in the unit price of US textile and apparel from China. Till 2018, US’ imports of textile and apparel increased steadily. However, the Sino-US trade war in 2018 slowed imports, with shipments from China declining sharply. In H1, 2020, imports shrank sharply due to the pandemic though they recovered gradually in the second half.

In 2021, Covid led disruptions and shipping crises made US’ textile and apparel imports volatile. Imports rebounded during the first half of the year due to a rising demand while their growth rate declined in the second half.

Rising labor costs impacts China’s export share

China continued to be an important sourcing destination for US companies in 2021. Sino-US trade war increased the cost of textile and apparel trade between China and the US. Yet, clothing brands continued to opt for China due to its stability. However, in 2022, labor costs are rising, compelling brands to move their sourcing bases to other Asian countries. This is causing a gradual decline in China's market share from nearly half before 2018 to slightly above 40 per cent. On the other hand, the market share of India, Turkey and even the EU (27) countries are increasing significantly this year.

China’s textile and apparel exports are also affected by the ban on Xinjiang cotton by the US. The finalization of the RCEP in 2022 may prove give slight respite for China’s textile and apparel exports in 2022. However, domestic mills continue to face challenges.