28
2022
-
07
If Trump is re-elected, which Chinese textile companies will face increased pressure?
Trump's re-election undoubtedly brings uncertainty to the future direction of China's textile industry.
Trump's re-election undoubtedly brings uncertainty to the future of China's textile industry. Trump's policy stance is basically clear: adhering to the "America First" policy and imposing additional tariffs on Chinese goods, even threatening to impose a 60% tariff, which has attracted widespread attention and controversy.
The variables in Sino-U.S. trade friction are increasing, and exports play an important role in China's textile industry. Trump's additional tariffs on Chinese goods may reduce the demand for textiles exported to the U.S. market due to tariff barriers, leading to the risk of order loss for Chinese textile enterprises. Among them, companies with no distinctive products, low added value, and low production efficiency will face a compressed survival space if export profits decrease. Additionally, textile enterprises that overly rely on the U.S. market will be affected by the potential developments in policy. Although tariffs may not necessarily increase by 60%, their impact will inevitably become apparent over time, and Sino-U.S. trade friction will be a major disruptive factor in the future, affecting exports to the U.S. market.
In the face of cost pressures brought by high tariffs, China's textile and apparel industry may undergo a round of consolidation. Companies with strong technical capabilities, brand influence, and cost control abilities are more likely to survive and grow, while some small and inefficient enterprises may face elimination. This consolidation will help enhance the competitiveness of the entire industry.
Related News