The "low end manufacturing" in the US can make T-shirts. Walmart, which has always been committed to "Made in the USA," recently listed a cotton T-shirt for $12.98.
According to local media, the United States is flooded with cheap imports, and the domestic apparel industry has been severely damaged. In 2023, less than 4 percent of clothing purchased in the United States will be locally made.
Walmart places non-cancellable order to guarantee T-shirts' Made in USA '
In an effort to develop indigenous manufacturing, Trump imposed tariffs on Chinese imports in 2018 during his first term as president and has proposed additional tariffs on all imports, including those from neighboring Canada and Mexico, during his second term.
But the founder of the clothing company that makes the T-shirt said: It's not tariffs that make the $12.98 shirt economically viable, it's Walmart's influence and guaranteed orders.
Without Walmart's backing by committing to buy a predetermined number of garments in installments, garment factories would not have the confidence to invest in automation and other upgrades that would lower production costs. A Walmart spokesperson also confirmed that the purchase order is in fact non-cancellable.
The head of the clothing company proudly says that they use local cotton, and the yarn is also spun and dyed in the United States. It also owns a cutting and sewing factory in North Carolina that was built specifically to produce Walmart T-shirts.
Reduce labor costs through automation
By automating some of its processes to reduce labor costs, the company has been able to compete with countries like Vietnam and China, where workers are paid a fraction of the U.S. minimum wage.
"As long as you don't need a lot of labor, you can make almost anything here," the company's founder said.
Unlike other highly mechanized industries, the garment industry has a limited degree of automation. In most cases, the fabric is still sewn by hand.
To fill Walmart's orders for hundreds of thousands of shirts, the company and its partners employ 75 people at a sewing factory in Los Angeles. It also spent $1 million on machines to increase production speed and efficiency. They also tweaked the design.
The T-shirts will compete with cotton T-shirts imported from China and other countries at half the price, according to Fashion Eight.
Currently, the company is producing 100% cotton sweatshirts for Walmart, which sell for $38.98. A similar-looking hoodie with front pockets retails for $148.
Despite tariffs and other efforts by the Trump and Biden administrations to revive manufacturing, 23 textile mills in the United States have closed in the past 18 months, according to the National Textile Organizing Council.
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