US textile and apparel imports are undergoing a quiet share reshuffle. In the first five months of 2026, total imports fell 8.92% year-on-year to $39.13 billion, yet China and India together lost $4.5 billion in share, far exceeding the market's net decline. This suggests US buyers are not shrinking purchases but redrawing their sourcing map.
Background
In Q1, US textile and apparel imports dropped 11.6% to $21.4 billion, followed by four consecutive months of decline before a 2.8% rebound in May to $8.46 billion. This pattern reflects restocking after earlier destocking rather than a fundamental demand recovery. For exporters, the key takeaway is that order rhythms are increasingly driven by inventory cycles, not just consumer sentiment.
On the supply side, ASEAN emerged as the biggest winner, with its import share rising to 20.83%. Vietnam, Cambodia, and Indonesia absorbed orders diverted from China and India, driven by cost advantages and geographic proximity. However, this window is narrowing. New US tariffs effective July 24 will directly impact Vietnam, Cambodia, Indonesia, Bangladesh, Pakistan, and India, raising cost pressures and casting uncertainty over recent order gains.
Industry Impact
The new tariff regime signals the end of the low-cost era for many suppliers. Different countries fall into different tariff tiers, widening cost gaps among competitors. For an industry with thin margins, every tariff increase can shift brand sourcing decisions. Brands will likely reassess the cost-effectiveness of each origin, triggering another round of order reallocation.
For Chinese textile exporters, the data carries a dual message. Direct apparel exports to the US face sustained competitive pressure, as the loss of share shows. Yet order migration does not mean the entire supply chain has moved. Many garment factories in Southeast Asia still rely heavily on external fabric, trim, and yarn supplies, preserving a viable export channel for China's upstream sectors.
More notably, tariff differentiation will reshape intra-ASEAN competition. Countries with lower tariffs may gain relative advantage, while others risk order losses. This will push multinational buyers to allocate orders more granularly rather than concentrating in one nation. For the whole supply chain, this means more complex sourcing portfolios and frequent order adjustments.
Practical Recommendations
For Sourcing Managers - Reassess total landed costs by comparing tariffs, logistics, and lead times together, not just unit prices. - Build multi-origin backup supply chains to mitigate disruption risk from single-country tariff changes. - Prioritize suppliers that offer complete fabric and trim solutions to ensure smooth cross-border coordination.
For Exporters - Expand fabric and yarn exports to Southeast Asian garment factories to offset potential apparel order declines. - Study tariff tier differences across countries and adjust market development priorities toward lower-tariff or exempted categories. - Strengthen compliance capabilities, ensuring certificates of origin and customs documents meet new requirements to reduce inspection risks.
Whether May's rebound becomes a sustained recovery depends on US consumer sentiment and inventory digestion. The July tariff implementation remains the biggest variable for the second half. Global textile supply chains will not anchor to a single region; the combined force of compliance, cost, and supply-chain capability will determine each exporting economy's path forward.