From June 9th to 11th, the first round of the China-Us economic and trade consultation mechanism meeting was held in London. The two sides reached a principle agreement on the framework measures for implementing the consensus reached by the two heads of state during the phone call on June 5th and consolidating the achievements of the Geneva talks. This breakthrough progress is like a timely rain, not only injecting a stabilizer into the global economy, but also having a structural impact on China's textile and garment export industry.
Dual enhancement of cost advantage and industrial chain vitality
Tariff adjustment has become the core issue of this round of consultations. Since the Trump administration imposed high tariffs on China in early 2025, Chinese textile and garment export enterprises have been struggling to move forward under the heavy burden of cost pressure. In the "Joint Statement of the China-Us Economic and Trade Talks in Geneva" released on May 12th, the US side explicitly cancelled the additional tariffs on 91% of Chinese goods, suspended the additional tariffs on 24% for 90 days, and only retained the tariff level of 10%. China simultaneously cancelled the corresponding countermeasures. This policy combination is like a sharp sword, directly breaking the shackles of cross-border trade costs and significantly boosting the price competitiveness of China's textile and garment products.
Take the US market as an example. During the period of high tariffs, due to the price disadvantage of Chinese products, some orders had no choice but to flow to Southeast Asia. Nowadays, with the weakening of tariff barriers, the foreign trade orders that were previously transferred due to tariffs are accelerating their return. Data from the China National Textile and Apparel Council shows that in March this year, due to the combined impact of enterprises' "export rush" for risk aversion and the low base effect, China's textile and apparel export value reached 23.4 billion US dollars, increasing by 12.9% year-on-year, with the growth rate rising by 16 percentage points compared to the previous two months. With the implementation of the consultation outcomes, this growth potential is expected to continue to be released in the following quarters, injecting a steady stream of impetus into the industry's development.
From the perspective of industrial ecology, the decline in tariff costs has created a powerful "multiplier effect". Enterprises can invest the saved taxes and fees in research and development innovation, equipment iteration and talent cultivation, promoting the transformation of the production end from cost-driven to technology-driven. This collaborative optimization of each link in the industrial chain will build a more resilient international competitive edge, enabling China's textile and garment industry to gain a firm foothold on the global stage.
New opportunities for order return and diversified layout
The principle-based framework agreement reached through consultations is like seeing the light at the end of the tunnel, effectively easing the uncertainty that has long shrouded the market. For textile and garment export enterprises, the clarification of the trade environment enables them to break away from the "short-term game" mindset and shift towards more strategic market development and capacity planning.
At the level of US purchasers, the wait-and-see attitude previously caused by tariff fluctuations has significantly subsided, and their willingness to place orders has notably increased. Some purchasing enterprises that originally planned to transfer to other regions are re-evaluating the value of cooperation with Chinese suppliers. This not only helps to consolidate the existing market share, but also creates conditions for a deeper penetration into the mid-to-high-end market in the United States.
It is worth noting that the boost in market confidence has produced a "spillover effect" : purchasers in third-party markets such as Europe and Asia, based on their recognition of the stability of China's textile and garment industry, are accelerating the establishment of long-term cooperative relationships. This diversification of order structure will effectively reduce the dependence on a single market, enhance the industry's risk resistance capacity, and build a solid protective wall for the industry's development.
Be vigilant against policy fluctuations and long-term structural pressures
Despite the remarkable phased achievements, the industry still needs to face up to the potential risks. Historical experience shows that during the trade negotiations from 2018 to 2019, the US side repeatedly violated the consensus and resumed the tariff increase measures. The policy direction after the 90-day tariff moratorium this time remains shrouded in mystery and full of uncertainties, and the medium and long-term plans of enterprises are facing uncertainties.
In addition, the United States' technology containment strategy against China has been continuously deepened. Although the direct impact on the textile and garment industry is limited, it may pose hidden constraints in areas such as the introduction of intelligent equipment and the research and development of new fiber materials. Coupled with external environmental changes such as the slowdown of global economic growth and the rise of trade protectionism, the development of the industry is facing multiple pressure tests.
In this regard, enterprises need to establish a "dual-track response" mechanism: on the one hand, establish a policy dynamic tracking system and respond to short-term fluctuations through flexible supply chain management and inventory optimization; On the other hand, increase the intensity of R&D investment, accelerate the high-end process of the brand, and enhance the resilience against risks through diversified market layout.
This China-Us economic and trade consultation has opened a "window of opportunity" for the textile and garment export industry. Driven by both tariff dividends and market confidence, the industry should seize the window of opportunity to accelerate transformation and upgrading. At the same time, it should respond to potential challenges with strategic determination, consolidate its competitive edge in the global textile and garment industry chain reconstruction, and achieve a key leap from "scale expansion" to "quality improvement". But can this leap be smooth? How will the uncertainty of policies affect the future direction of the industry?
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