The drama of the US tariff policy has been full of ups and downs, with plot twists and turns, causing the global market to ride a roller coaster. On May 29 local time, the US Federal Court of Appeals approved the Trump administration's request to temporarily suspend the previous ruling of a lower court that prohibited the enforcement of multiple US government tariff executive orders.
Just the day before, the United States Court of International Trade in New York had just ruled that the executive order issued by the US government to impose tariffs on multiple countries under the International Emergency Economic Powers Act was an overreach and illegal act, and prohibited the enforcement of the relevant executive order. The plaintiffs (the American Import Company and twelve state governments) must respond to the Trump administration's moratorium proposal by June 5th, and the Trump administration has to respond to the plaintiffs' response by June 9th. So this matter is not over yet. This dramatic change can't help but make people wonder: How exactly will the tariff policy develop?
Now let's review Trump's "reciprocal tariff" policy together
As early as April 2, 2025, Trump signed an executive order, announcing the implementation of a 10% benchmark tariff rate on all imported goods as the basis of the "reciprocal tariff" plan. For dozens of countries that have a high trade deficit with the United States, he further raised tariff rates: China is subject to a 34% tariff, Japan faces a 24% tariff, the European Union 20%, Vietnam 46%, the United Kingdom only 10%, Cambodia 49%, Taiwan of China 32%, South Africa 30%, India 26%, South Korea 25%, Thailand 36%, Switzerland 31%, Indonesia 32%, and Malaysia 24%. This policy has sparked widespread international controversy and also had a significant impact on the global textile and garment export industry.
The easing of the tariff predicament may bring a turning point to the textile and garment industry
During the Trump administration, the additional tariffs imposed on China covered numerous fields such as textiles and clothing, resulting in soaring costs for American enterprises and disruptions to their supply chains. Take the textile and garment industry as an example. The superimposition of tariffs on raw materials and finished products forces enterprises to cut orders and raise prices, significantly weakening their competitiveness. Data shows that since the implementation of the tariff policy, the average import cost of the US textile and garment industry has risen by 15%, the profit margin of small and medium-sized manufacturers has dropped by more than 20%, and layoffs and industrial contraction have occurred frequently.
However, the fate of the current tariff policy remains unresolved. Although the court ruled that the tariff executive order exceeded its authority, the suspension of execution order of the appellate court reversed the situation once again. If the final ruling determines that the tariffs are illegal, their cancellation will directly reduce industry costs and reshape the competitiveness of the global supply chain. Enterprises can reconfigure their procurement channels, resume cooperation with trading partners such as China, and accelerate recovery. Conversely, if tariffs remain in place, industry pressure will persist. The outcome of this legal game will directly affect the survival and development of the textile and garment industry.
The global path from tearing to reconstruction
This legal game surrounding the US tariff policy is like a mirror, reflecting the rifts and struggles in the international trade system between unilateralism and multilateral rules. From the aggressive implementation of the Trump administration's "reciprocal tariff" policy to the dramatic reversal of court rulings, the global market has always been seeking balance amid policy fluctuations. As a "barometer" in the trade storm, the textile and garment export industry not only bears the survival pressure brought by tariff barriers but also holds the hope of industrial chain reconstruction.
In the future, no matter what the ultimate direction of tariff policies is, this years-long tariff dispute has profoundly warned that in today's deeply intertwined globalization, any trade barriers constructed with a "zero-sum game" mindset will eventually backbite their own economy and even disrupt the fragile balance of the global industrial chain. Only through dialogue, consultation and rule coordination can a predictable business environment be created for enterprises of all countries, rejuvenate traditional manufacturing industries such as the textile and garment industry, and enable the global economy to emerge from the tumultuous fog like a roller coaster in win-win cooperation.
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