The US tariff "stick" has landed, and the Chinese textile industry is facing a direct impact.On April 9, the "reciprocal tariff" policy announced by the Trump administration of the United States officially came into effect, and the cumulative tariff on Chinese goods exported to the United States reached 104%, setting a historical record. The impact of this policy on China's textile industry is particularly significant:   1. Export costs have surged, and the risk of order loss has increased China's textile and apparel industry exports to the United States account for 16.9% of the total (2024 data), but the industry's average profit margin is only 2.3%~5.2%. High tariffs directly lead to a 30%~40% increase in terminal retail prices, forcing US buyers to shift orders to low-tariff countries such as Bangladesh and Vietnam. 2. Supply chain transfer dilemma Although some companies have previously evaded tariffs by setting up factories in Southeast Asia, Trump has raised the tax rates of Vietnam, Thailand and other countries to 36%~46% this time, blocking the "bypass export" path. For example, if Chinese brakes are exported to the United States via Thailand, the total cost will still increase by 53%, and the profit margin of enterprises will be completely compressed. 3. Employment and regional economic pressure The textile industry is concentrated in the Yangtze River Delta and the Pearl River Delta. Female employees account for a high proportion and have single skills. If orders continue to be lost, it may cause regional employment problems.   Facing the impact of the industry, the response strategy of Chinese textile enterprises: from "passive defense" to "active upgrading"   1. Increase product added value and build core competitiveness Functional polyester yarn development: Develop antibacterial, warm, and environmentally friendly polyester yarns to meet the green consumption trend in Europe and the United States. For example, green materials such as lyocell fiber can target the EU market, jointly develop creative designs with high-tech companies, and enhance premium space Green production and circular economy: Use recycled polyester technology to meet EU carbon tariff requirements and seize sustainable market opportunities. Supply chain collaborative innovation: Cooperate with downstream clothing companies to customize yarn specifications, shorten delivery cycles, and respond to fast fashion needs with small orders and fast response.   2. Reconstruct the global supply chain network "Chinese yarn + overseas ready-made garments" model: deploy ready-made garment processing factories in Cambodia and Myanmar, take advantage of the local low tariffs against the United States, and retain high value-added links such as polyester yarn in China Leveraging RCEP and ASEAN markets: China's textile exports to ASEAN will increase by 6.8% in 2024, and Shengze will directly reach consumers through cross-border e-commerce (such as SHEIN), and its gross profit margin will increase by 8%-10% Branding and digital transformation: Promote domestic brands through platforms such as TikTok, strengthen the "Made in China" label in conjunction with the Xinjiang cotton incident, and enhance premium capabilities   3. Reduce dependence on the US market Explore diversified markets, such as ASEAN, BRICS, Europe and countries along the Belt and Road, and use the RCEP agreement to reduce tariff costs. BRICS countries cooperate with Japan and South Korea, and the trade volume of BRICS countries has increased by an average of 11.3% per year. The negotiations on the China-Japan-South Korea Free Trade Area are advancing. Technological complementarity (such as Japan's high-end fiber technology + China's manufacturing capabilities) can enhance product added value   In this industrial transformation caused by tariffs, China's yarn industry is experiencing a rebirth from "cost-driven" to "value creation". When technological innovation, green transformation and global layout form a synergy, China's textile industry will be more resilient in the new international division of labor. Only by transforming the "advantage of the entire industrial chain" into a "technological moat" can we be invincible in the global trade changes.