A recent report from consultancy firm Trade Partnership Worldwide has raised concerns over the potential impact of heightened tariffs and port fees on the US apparel trade. If current tariff hikes become permanent and additional fees on Chinese vessels are enforced, the US could see a noticeable decline in clothing imports, the study warns.
While the Office of the US Trade Representative (USTR) has recently narrowed its proposal for fees on Chinese-built ships, a steep 124.1% tariff on apparel and footwear imports from China remains in effect. With China still dominating the US market as a leading supplier, options for importers to shift sourcing are limited.
According to data from PIERS, a division of S&P Global and a sister platform to the Journal of Commerce, US imports of apparel and footwear rose by 13.3% in 2024. Ports of Los Angeles and Long Beach, major entry points for these goods, saw a 28.2% year-over-year spike in shipments. However, when measured against pre-pandemic levels from 2019, imports have grown just 3.8%, suggesting a much slower long-term trend. The five-year compound growth rate stands at just 4% nationally, and only 0.5% for the two major California ports.
Despite efforts to diversify sourcing—turning to countries like Bangladesh, India, Indonesia, and Vietnam—China still accounted for a dominant 41.7% of US containerized apparel and footwear imports in 2024, PIERS data reveals.
Trade Partnership Worldwide’s study, cited by the American Apparel and Footwear Association (AAFA) in comments submitted to the USTR, predicts a 1.6% annual drop in apparel imports and a 2.7% annual decline in leather goods imports if current tariffs are maintained. The study also forecasts a sharp drop in US exports, estimating an 11.1% fall in apparel and a 13% decline in leather goods due to anticipated retaliatory tariffs from China and other nations.
While a 90-day pause on reciprocal tariffs is currently in place, industry leaders remain uneasy about ongoing policy uncertainty.
“The on-again, off-again tariff policy is forcing companies to careen between chaos and costs,” said AAFA President and CEO Steve Lamar in a statement on April 9. “These extreme tariffs, layered on top of the existing Section 301 duties, will lead to higher prices for everyday items and increased costs for American manufacturers dependent on materials from China.”
Beyond pricing concerns, the AAFA has also flagged potential supply chain bottlenecks. The group warns that proposed USTR port fees could prompt carriers to consolidate vessel calls at fewer, larger ports—placing even more strain on already limited terminal and intermodal rail infrastructure.
“The supply of intermodal transportation is already limited,” wrote Nate Herman, AAFA’s senior vice president of policy, in a letter to the USTR. “Increasing demand at major ports could exacerbate congestion issues.”
Meanwhile, apparel and footwear importers have suffered setbacks on other regulatory fronts. The AAFA has lobbied in favor of the US Foreign Trade Zone Parity Act, which would extend de minimis treatment to goods entering through foreign trade zones. They’ve also fought to preserve the de minimis exemption for shipments from China, which allows packages under $800 to enter the US duty-free.
Retailers warn that scrapping this exemption would drive up costs and delay deliveries. As of now, the exemption for Chinese shipments is scheduled to end on May 2, pending any changes from the Trump administration.
Source: joc.com