US sourcing is not returning home in any meaningful way; it is shifting across Asia as tariffs, freight volatility and cautious retail demand reshape buying decisions.
US textile and clothing imports fell 12% year on year to $23.7 billion in the first quarter of 2026, signalling weaker order momentum across the market. The sharper story, however, is China’s continued loss of share. Chinese shipments to the US dropped 45.9% to $3.1 billion, while Vietnam exported $4.4 billion and remained the leading supplier.
Vietnam holds the lead
The first-quarter data shows that US buyers are still reducing China exposure, but not necessarily cutting Asian sourcing overall. ASEAN suppliers increased shipments by 5.8% to $7.8 billion, with Cambodia rising 16.3% to $1.4 billion. Vietnam’s exports to the US grew 4.7%, reinforcing its position as the main beneficiary of sourcing diversification.
The shift was uneven. India’s textile and apparel exports to the US fell 26.6% to $2.0 billion, while Bangladesh declined 8.2% to $2.1 billion. These figures suggest that tariff pressure alone does not guarantee order gains; buyers are also weighing lead time, compliance risk, capacity reliability, cost structure and product mix.
Tariffs complicate sourcing economics
The tariff backdrop remains legally and commercially unsettled. A US trade court ruled that President Trump’s 10% global tariffs imposed under Section 122 of the Trade Act were unjustified, but the ruling was narrow and did not remove the duties for most importers. Reuters reported that the tariffs remain in effect for most importers until their scheduled expiry on July 24, pending further legal and policy action.
That uncertainty has encouraged importers to diversify, delay or reduce orders rather than commit aggressively. It has also weakened the original policy goal of rebuilding US textile production; the visible result is more geographic redistribution than reshoring.
Freight adds another pressure point
Shipping costs have added to the strain. Drewry reported Shanghai–Los Angeles rates at $3,062 per 40-foot container on May 7, after emergency fuel and peak-season surcharges lifted transpacific rates. Maersk also warned that the Iran conflict had raised fuel costs sharply, even though direct container exposure to the Strait of Hormuz is limited.
For suppliers, the next test is buyer confidence. If US demand remains weak and tariffs stay uncertain, sourcing gains will go to countries that can offer not only low cost, but predictable delivery, compliance documentation and capacity discipline.
