11 Apr Trump Tariffs: A New Challenge For Asia’s Apparel Industry

Posted at 15:26h in Tin tức thị trường by
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KEY HIGHLIGHTS

  • President Donald Trump’s tariff announcement on April 2 sent shockwaves through the global fashion industry — particularly in Asia, the region that dominates the export supply chain for apparel and footwear to the U.S.
  • While China responded with force, countries like Vietnam, Indonesia, Cambodia, and India signaled willingness to negotiate — a move aimed at de-escalating trade tensions.

 

VIETNAM: DIPLOMACY OVER ESCALATION

  • In a letter to the U.S. President dated April 5, General Secretary To Lam expressed Vietnam’s readiness to remove all tariffs on U.S. imports as a gesture of goodwill.
  • The move is strategic, given the critical role of Vietnam’s textile and garment sector — one of the top four export pillars, contributing significantly to GDP and employing millions of workers.

 

IMPACT OF TRUMP TARIFFS ON VIETNAM’S GARMENT INDUSTRY

  • Vietnam is currently the second-largest exporter of apparel and footwear to the U.S, after China. Global giants such as Nike and Adidas rely heavily on Vietnam-based manufacturing.
  • Should a 46% tariff be imposed, profit margins for exporters would decline. Although still more favorable than China (facing a 54% tariff), Vietnam would lose 10–20% in competitiveness compared to Bangladesh, Pakistan, and Cambodia — countries with lower labor costs.
  • Amidst a stagnating U.S. consumer market, Vietnamese firms may be forced to lower prices to retain market share, threatening profitability across the sector.

 

RESPONSES FROM OTHER ASIAN COUNTRIES

  • Alongside Vietnam, countries including Indonesia, Cambodia, India, Taiwan, and Malaysia have opted against retaliatory actions, instead expressing openness to dialogue.
  • In contrast, China — the largest supplier of fashion and footwear to the U.S. — immediately imposed reciprocal tariffs, intensifying trade tensions to a new level.

 

CONCLUSION

  • Vietnam and several Asian nations are pursuing a path of pragmatic diplomacy, aiming to stabilize supply chains and safeguard export advantages.
  • China’s hardline stance risks escalating trade tensions and deepening uncertainty in the global fashion supply network.
  • Amid geopolitical volatility, policy flexibility and constructive dialogue between Vietnam and the U.S. may unlock new opportunities for garment players — from market restructuring to long-term competitive repositioning.

 

(Source: BOF, VnExpress, VnEconomy)