The United States has imposed a 25% tariff on textile and apparel imports from Canada and Mexico, citing national security concerns.
This move threatens Mexico’s $8.9 billion and Canada’s $2.48 billion in textile exports, potentially shifting US orders to other regions such as Asia, Latin America, and Europe. Countries like Vietnam, Bangladesh, India, and those in the CAFTA-DR region stand to benefit as US buyers look for cost-effective alternatives.
President Trump invoked a national emergency to justify the tariffs, which also include a 10% tariff on Canadian energy and Chinese imports. The tariffs, aimed at addressing concerns over illegal immigration and drug trafficking, have sparked a trade conflict with key allies, leading to retaliatory measures from Canada and Mexico. Economic analysts warn that these tariffs could drive up consumer prices in the US, particularly for everyday goods like clothing, footwear, and home textiles, which could fuel inflation and disrupt global supply chains.
For Mexico, the textile and apparel industry, which relies heavily on the US market, faces significant challenges. The 25% tariff affects products like apparel (57% of exports), home textiles (18%), and footwear (10%).
The tariff could reduce US demand, pushing US buyers to alternative countries like Vietnam, Bangladesh, or India, which offer lower production costs. For Canada, the tariff threatens to reduce the competitiveness of its textile exports, particularly apparel, technical textiles, and footwear, as US buyers shift to other regions.
The tariffs may encourage US buyers to diversify their supply chains, benefiting countries in Asia, Central America, and Europe.
