Trump's tariffs cast a shadow over the Asian garment industry, and American consumers may face a wave of price increases for clothing.

As the new round of trade war initiated by U.S. President Trump escalates, key countries and companies in the global clothing and footwear supply chain are facing unprecedented challenges. Among them, Asian clothing manufacturers are at the forefront and may suffer heavy losses due to high tariffs and supply chain shifts, while American consumers will bear the brunt of this by paying higher costs. Currently, the U.S. imposes tariffs on Chinese goods of up to 145%, with China being one of the largest clothing suppliers to the U.S. Although some tariffs were suspended on April 9, they are expected to be reinstated after the temporary suspension ends in early July. At the same time, the U.S. also imposes a general 10% tariff on clothing and footwear imports from other countries, and additional tariffs known as "reciprocal tariff rates" have been set to impose higher rates on 60 major surplus countries, including Vietnam, Bangladesh, and Cambodia, which are key players in the global clothing industry chain. Countries like Vietnam, Bangladesh, and Cambodia have been preferred manufacturing bases for international clothing giants due to their low labor costs. For example, about 90% of Bangladesh's exports to the U.S. are garments, with the U.S. being its largest customer. Under the proposed reciprocal tariff rates, the U.S. will impose an additional 37% tariff on Bangladesh's goods. Cambodia faces a higher rate of 49%, while Vietnam faces a rate of 46%. This will not only affect the export income of these countries, but may also force clothing brands to look for alternative supply sources or directly pass on costs to American consumers. According to data from the American Apparel and Footwear Association, 97% of clothing and footwear in the U.S. is imported, with more than half of the $108 billion in clothing imported by the U.S. in 2024 coming from China, Vietnam, and Bangladesh. Of the top ten supplying countries, seven are from Asia. Trump's first round of tariffs in 2018 forced many companies to partially relocate production out of China to avoid tariff barriers. This trend has also driven the development of the clothing manufacturing industries in countries like Vietnam, Bangladesh, and Cambodia. According to data from the Cambodia Garment Manufacturing Association, as of 2024, over half of the garment factories in the country are owned by Chinese companies. For major international brands, tariffs will directly impact their cost structures. Nike, Inc. Class B (NKE.US) sources approximately 50% of its footwear and 28% of its clothing from Vietnam in 2024; Adidas (ADDYY.US) sources 38% of its shoes from Vietnam and 23% of its clothing from Cambodia; Lululemon (LULU.US) sources 40% of its products from Vietnam, 17% from Cambodia, and 7% from Bangladesh; and ON Running (ONON.US) sources up to 90% of its shoes from Vietnam. When faced with high tariffs, these brands have to consider raising prices or restructuring their supply chains. Consumers will also feel the pressure of price increases. A study from the Yale Budget Lab shows that if tariffs persist, shoe prices for American consumers will rise by 87% in the next three years, and clothing prices will rise by 65%; even in the long term, prices are expected to be 29% and 25% higher, respectively. In addition, the U.S. plans to cancel the "duty-free parcel" exemption policy for parcels directly mailed from China on May 2, meaning that individual parcels valued at less than $800 will no longer be exempt from tariffs.