Experts are closely monitoring the impact of trade wars and China’s human rights violations on the economic slump. They are particularly interested in how Trump’s new term will further affect the situation.
According to a recent report by the United States International Trade Commission (USITC), Beijing’s dominance in apparel exports to the United States has declined in favor of other Asian countries. Factors contributing to this shift include the U.S.-China trade war and China’s human rights abuses, particularly against the Uyghur population in Xinjiang.
The USITC report highlighted that China’s share of the U.S. apparel market decreased by 16.4% from 2013 to 2023, while countries like Vietnam, Bangladesh, India, and Cambodia experienced an increase in their market shares.
The imposition of tariffs by both the U.S. and China, as well as human rights concerns in Xinjiang, have impacted the Chinese garment exports to the U.S. The Uyghur Forced Labor Prevention Act, passed by Congress in 2022, further restricted imports produced with forced Uyghur labor.
The USITC report also noted that rising wages in China and a growing awareness among U.S. importers about diversifying sourcing locations have contributed to the decline in Chinese exports to the U.S.
As a result of these developments, other Asian nations, such as Vietnam, Bangladesh, India, Indonesia, Cambodia, and Pakistan, have seen significant gains in the U.S. apparel market. These countries have focused on improving their industry infrastructure and complying with Western regulations to capitalize on the opportunities created by China’s export decline.
Overall, the shifting dynamics in the apparel industry underscore the complex interplay between trade policies, human rights issues, and market forces in shaping global trade patterns.
Garment employees work in a sewing section of the Fakhruddin Textile Mills Limited in Gazipur, Bangladesh, on Feb. 7, 2021. Mohammad Ponir Hossain/Reuters
Trump’s Second Term
Since the trade war between the United States and China during Trump’s first tenure significantly impacted the textile exports to the United States, industry experts and geopolitical analysts are closely watching how the president-elect’s incoming tariff policies against China and other nations will impact the global market.
Debsarkar said while the pandemic didn’t impact the Bangladesh textile industry, the new Trump administration could do so.
“The challenge is that, since the American election, President Trump has announced that he’s going to impose a blanket import duty tariff. Of course, China is the primary target. But he’s also said that he’s going to include other countries,” said Debsarkar, adding that it remains to be seen how South Asian and Southeast Asian countries will be impacted.
Sayedad Hossain, director of the National Institute of Strategic Strategies, a Bangladesh-based think tank, told The Epoch Times that Bangladesh is preparing to face the potential trade challenges likely to arise due to new U.S. tariffs.
“While such measures could disrupt global trade, Bangladesh views this situation as an opportunity to deepen its trade ties with the US and gain competitive advantages in specific sectors, particularly ready-made garments,” Hossain said in an email.
According to Hossain, historically Trump’s trade policies have been focused on bilateral trade deals in contrast with Democrats’ preferences for multilateral trade negotiations. Bangladesh, he said, can leverage this situation by proposing a reciprocal trade agreement to secure tariff-free access for its goods in the U.S. market.
This could include offering zero-tariff access to U.S. goods in return, which would be workable because U.S. products are expensive and would be unlikely to flood the Bangladeshi market, he said. Another measure could involve expanding the market share for Bangladeshi products in the U.S. market.
“Securing tariff-free or reduced-tariff access could significantly enhance the competitiveness of Bangladeshi exports, particularly in ready-made garments, which currently faces an average 15.70% tariff in the US,” he said.
“Vietnam could become an alternative exporter for some products such as textiles, but also face risks from China shifting its exports of some products such as steel to Vietnam, worsening its trade deficit with China,” it said.
