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Observer
6 days ago
- Business
- Observer
Tariffs drive US clothing imports from China to 22-year low in May
LONDON/NEW YORK: The value of apparel imports from China to the US fell in May to its lowest monthly level in 22 years, according to latest trade data, highlighting the impact of steep US tariffs. China has for years been the biggest exporter of clothes to the US, but its share of the US apparel market has fallen as trade relations between the world's two biggest economies soured. US President Donald Trump ratcheted tariffs up to as much as 145% in April, driving more US retailers to reduce purchases from Chinese factories in favor of Vietnam, Bangladesh, India, and elsewhere. "The sharp decline in US apparel imports from China in May 2025 was anything but natural," said Sheng Lu, professor of fashion and apparel studies at the University of Delaware. The US imported $556 million worth of clothing from China in May, down from $796 million in April, and the fourth straight month of declines, according to US International Trade Commission (USITC) data. The last time monthly imports were lower than that was May 2003. Earlier in the year, anticipating Trump's tariffs, US retailers stocked up: the value of apparel imports from China in January was $1.69 billion, up 15% from the $1.47 billion a year earlier. Despite a recent trade deal between the US and China, most leading US fashion companies still plan to reduce their China exposure further, if not totally move out of the country, Lu said. The same pattern is visible in demand from US retailers for factory inspections. Auditing firm QIMA said its data, based on thousands of inspections and audits worldwide, shows US sourcing from China fell by nearly a quarter in the second quarter from a year earlier, while demand in Southeast Asia grew 29%. Another early winner was Mexico, according to the USITC data. In May the US imported $259 million worth of apparel from its southern neighbor, up 12% from a year ago. QIMA said in its note that the shift out of China is not new and Southeast Asia's share of US sourcing has been steadily growing since mid 2023. "While the US administration's tariff policies took several sharp turns during Q2 2025, the procurement patterns of US-based brands and retailers have stayed largely within the bounds of long-standing trends established before this year's escalation," QIMA said. The coming months may put US supply chains to a new test, QIMA said, as the temporary pause on tariffs for most non-China countries will soon expire, coinciding with the kick-off of holiday season procurement.— Reuters
New Straits Times
6 days ago
- Business
- New Straits Times
Tariffs drive US clothing imports from China to 22-year low in May
LONDON/NEW YORK: The value of apparel imports from China to the US fell in May to its lowest monthly level in 22 years, according to the latest trade data, highlighting the impact of steep US tariffs. China has for years been the biggest exporter of clothes to the US, but its share of the US apparel market has fallen as trade relations between the world's two biggest economies soured. US President Donald Trump ratcheted tariffs up to as much as 145 per cent in April, driving more US retailers to reduce purchases from Chinese factories in favour of Vietnam, Bangladesh, India, and elsewhere. "The sharp decline in US apparel imports from China in May 2025 was anything but natural," said Sheng Lu, professor of fashion and apparel studies at the University of Delaware. The US imported US$556 million worth of clothing from China in May, down from US$796 million in April, and the fourth straight month of declines, according to US International Trade Commission (USITC) data. The last time monthly imports were lower than that was May 2003. Earlier in the year, anticipating Trump's tariffs, US retailers stocked up: the value of apparel imports from China in January was US$1.69 billion, up 15 per cent from the US$1.47 billion a year earlier. Despite a recent trade deal between the US and China, most leading US fashion companies still plan to reduce their China exposure further, if not totally move out of the country, Lu said. The same pattern is visible in demand from US retailers for factory inspections. Auditing firm QIMA said its data, based on thousands of inspections and audits worldwide, shows US sourcing from China fell by nearly a quarter in the second quarter from a year earlier, while demand in Southeast Asia grew 29 per cent. Another early winner was Mexico, according to the USITC data. In May, the US imported US$259 million worth of apparel from its southern neighbour, up 12 per cent from a year ago. QIMA said in its note that the shift out of China is not new and Southeast Asia's share of US sourcing has been steadily growing since mid-2023. "While the US administration's tariff policies took several sharp turns during Q2 2025, the procurement patterns of US-based brands and retailers have stayed largely within the bounds of long-standing trends established before this year's escalation," QIMA said. The coming months may put US supply chains to a new test, QIMA said, as the temporary pause on tariffs for most non-China countries will soon expire, coinciding with the kick-off of holiday season procurement.
Yahoo
27-04-2025
- Business
- Yahoo
How Trump's tariffs are snarling supply chains
Despite signs of a thaw earlier this week, Washington and Beijing are locked in a standoff on tariffs, and global supply chains are feeling the pressure. Disruption from tariffs is occurring at multiple points in commercial supply lines — from factory floors in East Asia, through the shipping and transportation industry, at U.S. ports of entry, and by U.S. retailers who are warning of empty shelves. A quick resolution with Beijing, while desirable for U.S. importers, could spell additional interference, as a sudden demand surge would likely bullwhip through the commercial pipeline. Here's a look at what global supply chains are going through as the U.S. and China dig their heels in. The tariffs are discombobulating Chinese production, with work drying up for some firms as others pick up the slack, supply chain experts told The Hill. 'The flow of goods is far less predictable,' Sébastien Breteau, CEO of quality control firm QIMA, which inspects factories in China, said. 'Some suppliers have excess capacity, while others face bottlenecks driven by shifting demand.' Breteau said that some of his clients are changing their business strategies. 'Several large Chinese multinationals we work with are actively repositioning. In some cases, they're even deprioritizing the U.S. market in favor of more globally stable strategies. Tariff uncertainty and regulatory unpredictability are … shaping sourcing decisions at the highest levels,' he said. The concerns from businesses are being echoed by the Chinese Communist Party. A readout of the Politburo's Friday meeting translated by China expert Bill Bishop said that 'the effects of external shocks are intensifying.' 'It is necessary to strengthen bottom-line thinking [and] fully prepare contingency plans,' the readout said. Shipping and logistics experts say they're seeing supply chains changing in real time as a result of the tariffs. 'Ocean carriers — the people that operate the ships — have already started to reposition cargo ships,' Ryan Petersen, CEO of logistics platform company Flexport, said Wednesday. 'Instead of serving China, they're going down to Vietnam. They're picking up new trade routes going from Southeast Asia to Europe or to the US.' Cargo insurers have been raising their premiums in response to the tariffs, adding to the costs of global shipping. 'Cargo insurance premiums are at punishing and unsustainable levels,' David Osler wrote for Lloyd's List in March. 'Tariffs are expected to entail broadly commensurate increases in cargo insurance premiums.' As premiums have been going up, container freight rates out of Shanghai have been going down for major world ports including Rotterdam, Los Angeles, Genoa and New York. Rates to Los Angeles dropped 2 percent to $3,611 per 40-foot container, shipping indexer Drewry reported Thursday. Port operators are seeing increased cancellations from client shipping companies. 'What I'm seeing right now … is that we've got about 12 canceled or voided sailings for the month of May — that's equivalent to all the voids last May at this time,' Los Angeles Port director Gene Seroka said earlier this month. Drewry projected a 1-percent decline in world port throughput for the year, which would be only the third time in the company's history that volumes turned negative compared to the previous year. 'The predicted drop of 1 percent will be roughly on a par with that witnessed in the pandemic year of 2020, when carriers cashed in with record profits,' analysts for Lloyd's wrote Friday, calling attention to 'the return of naked protectionism.' To manage their inventories, companies are also making use of bonded warehouses, in which their imports can be stored without having to pay tariffs until they're released to retailers or re-exported. Bonded facilities are being used in the hopes that Washington and Beijing strike a deal to bring down the 145-percent U.S. tariff on Chinese imports, logistics experts say. 'People are starting to scramble to move goods into bonded warehouses,' Flexport's Petersen said. 'People are feeling paralysis right now — if you know the duties are going to come down, the right move is to wait and hold off on shipping new cargo.' At the end of the global value chain, retailers are wringing their hands. The heads of U.S. mega-retailers Walmart, Home Depot and Target met with President Trump this week, where they warned about empty shelves. During the meeting, they spoke about their fears of higher prices for consumers, including during the holiday season at the end of the year, one source told The Hill. In statements provided to The Hill, spokespersons for Target, Walmart and Home Depot all said their meeting with the president was productive. 'We had a productive meeting with President Trump and our retail peers to discuss the path forward on trade,' Target spokesperson Jim Joice said. The National Retail Federation, a major industry lobby, has been railing against the tariffs. 'Speak out against tariffs,' the group says on its website. 'The administration should avoid tariffs on everyday consumer goods.' Despite a tonal shift this week in its trade stance toward China and reports that Treasury Secretary Scott Bessent told financial leaders that the trade war was reaching 'unsustainable' levels, Chinese officials Friday threw cold water on the idea that a deal would soon be reached. 'China and the U.S. are not having any consultation or negotiation on tariffs. The U.S. should stop creating confusion,' Foreign Ministry spokesperson Guo Jiakun said Friday. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
27-04-2025
- Business
- The Hill
How Trump's tariffs are snarling supply chains
Despite signs of a thaw earlier this week, Washington and Beijing are locked in a standoff on tariffs, and global supply chains are feeling the pressure. Disruption from tariffs is occurring at multiple points in commercial supply lines — from factory floors in East Asia, through the shipping and transportation industry, at U.S. ports of entry, and by U.S. retailers who are warning of empty shelves. A quick resolution with Beijing, while desirable for U.S. importers, could spell additional interference, as a sudden demand surge would likely bullwhip through the commercial pipeline. Here's a look at what global supply chains are going through as the U.S. and China dig their heels in. On the Chinese factory floor The tariffs are discombobulating Chinese production, with work drying up for some firms as others pick up the slack, supply chain experts told The Hill. 'The flow of goods is far less predictable,' Sébastien Breteau, CEO of quality control firm QIMA, which inspects factories in China, said. 'Some suppliers have excess capacity, while others face bottlenecks driven by shifting demand.' Breteau said that some of his clients are changing their business strategies. 'Several large Chinese multinationals we work with are actively repositioning. In some cases, they're even deprioritizing the U.S. market in favor of more globally stable strategies. Tariff uncertainty and regulatory unpredictability are … shaping sourcing decisions at the highest levels,' he said. The concerns from businesses are being echoed by the Chinese Communist Party. A readout of the Politburo's Friday meeting translated by China expert Bill Bishop said that 'the effects of external shocks are intensifying.' 'It is necessary to strengthen bottom-line thinking [and] fully prepare contingency plans,' the readout said. Global shippers seek alternate routes Shipping and logistics experts say they're seeing supply chains changing in real time as a result of the tariffs. 'Ocean carriers — the people that operate the ships — have already started to reposition cargo ships,' Ryan Petersen, CEO of logistics platform company Flexport, said Wednesday. 'Instead of serving China, they're going down to Vietnam. They're picking up new trade routes going from Southeast Asia to Europe or to the US.' Cargo insurers have been raising their premiums in response to the tariffs, adding to the costs of global shipping. 'Cargo insurance premiums are at punishing and unsustainable levels,' David Osler wrote for Lloyd's List in March. 'Tariffs are expected to entail broadly commensurate increases in cargo insurance premiums.' As premiums have been going up, container freight rates out of Shanghai have been going down for major world ports including Rotterdam, Los Angeles, Genoa and New York. Rates to Los Angeles dropped 2 percent to $3,611 per 40-foot container, shipping indexer Drewry reported Thursday. Port flows recall pandemic disruptions Port operators are seeing increased cancellations from client shipping companies. 'What I'm seeing right now … is that we've got about 12 canceled or voided sailings for the month of May — that's equivalent to all the voids last May at this time,' Los Angeles Port director Gene Seroka said earlier this month. Drewry projected a 1-percent decline in world port throughput for the year, which would be only the third time in the company's history that volumes turned negative compared to the previous year. 'The predicted drop of 1 percent will be roughly on a par with that witnessed in the pandemic year of 2020, when carriers cashed in with record profits,' analysts for Lloyd's wrote Friday, calling attention to 'the return of naked protectionism.' To manage their inventories, companies are also making use of bonded warehouses, in which their imports can be stored without having to pay tariffs until they're released to retailers or re-exported. Bonded facilities are being used in the hopes that Washington and Beijing strike a deal to bring down the 145-percent U.S. tariff on Chinese imports, logistics experts say. 'People are starting to scramble to move goods into bonded warehouses,' Flexport's Petersen said. 'People are feeling paralysis right now — if you know the duties are going to come down, the right move is to wait and hold off on shipping new cargo.' Retailers put pressure on Trump At the end of the global value chain, retailers are wringing their hands. The heads of U.S. mega-retailers Walmart, Home Depot and Target met with President Trump this week, where they warned about empty shelves. During the meeting, they spoke about their fears of higher prices for consumers, including during the holiday season at the end of the year, one source told The Hill. In statements provided to The Hill, spokespersons for Target, Walmart and Home Depot all said their meeting with the president was productive. 'We had a productive meeting with President Trump and our retail peers to discuss the path forward on trade,' Target spokesperson Jim Joice said. The National Retail Federation, a major industry lobby, has been railing against the tariffs. 'Speak out against tariffs,' the group says on its website. 'The administration should avoid tariffs on everyday consumer goods.' Despite a tonal shift this week in its trade stance toward China and reports that Treasury Secretary Scott Bessent told financial leaders that the trade war was reaching 'unsustainable' levels, Chinese officials Friday threw cold water on the idea that a deal would soon be reached. 'China and the U.S. are not having any consultation or negotiation on tariffs. The U.S. should stop creating confusion,' Foreign Ministry spokesperson Guo Jiakun said Friday.
Yahoo
26-03-2025
- Business
- Yahoo
QIMA, Retraced team on traceability aim, secures investment from PE firm
The collaboration will see the integration of QIMA's onsite compliance expertise with the Retraced platform to offer solutions across supply chains. The apparel sector requires both digital and physical verification methods to achieve supply chain visibility. QIMA's network of on-site auditors ensures that the information added into Retraced's platform is reliable and accurate. QIMA consumer products CEO Pierre-Nicolas Disser said: "Our partnership with Retraced provides brands with the tools for ethical, transparent, and sustainable sourcing. By combining expertise in compliance with advanced traceability technology, we're enabling brands to build trust through responsible sourcing practices that protect both consumers and workers at every stage of the supply chain.' The strategic alliance seeks to offer benefits to brands, retailers and suppliers by ensuring complete traceability is achieved from start to finish, without compromising both regulatory and customer standards. It aims to help streamline compliance and risk mitigation by facilitating due diligence processes, effectively rectifying compliance issues, and minimising vulnerabilities within the supply chain. Furthermore, it seeks to help enhance reputation and collaborative relationships using validated data, increase transparency, and strengthen business partnerships. The partnership provides brands with enhanced oversight, governance, and assurance of adherence to compliance within their supply chains. The integration of QIMA's environmental, social, and governance (ESG) services with the Retraced platform is said to allow businesses to monitor, evaluate, and handle traceability obligations from a unified system. Retraced CEO & co-founder Lukas Pünder said: "Transparency and traceability are no longer optional—they are fundamental for responsible business practices. Partnering with QIMA enables us to bridge the gap between digital traceability and on-the-ground verification, ensuring that brands and suppliers have access to the most reliable data for building transparent, compliant, and sustainable supply chains.' In September last year, Retraced announced a successful Series A closing round of €15m ($16.53m) to expedite its mission to make sustainability management more effective and accessible for companies in the fashion and textile industry worldwide. In a separate development, international private equity firm TA Associates made a strategic investment in QIMA. Financial terms of the deal remain undisclosed. The collaboration is designed to propel QIMA's aggressive growth strategy and catalyse innovation within the Testing, Inspection, and Certification (TIC) market. Serving over 30,000 clients, QIMA has been focused on developing an advanced technology platform since its foundation in 2005. With the support of TA's financial investment, QIMA is poised to further refine its technological and AI competencies, aiming to provide superior quality assurance and compliance solutions to its wide-ranging clientele. TA managing directors Patrick Sader and Christopher Parkin, who will join QIMA's Board of Directors, said: 'We believe there is significant opportunity for QIMA to expand its reach into new markets and build on its service offerings, all to the benefit of its customers." QIMA-Retraced partnership provides fashion brands with solutions to ensure a transparent and sustainable supply chain. Credit: Chay_Tee/Shutterstock. From: Laura Husband Sent: 25 March 2025 14:32 To: medialeads-asia Cc: newsdesk@ Subject: Style story FW: Strategic Growth at QIMA: TA Associates Investment and Retraced Partnership Image: "QIMA, Retraced team on traceability aim, secures investment from PE firm" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
