US China Trade War, Taiwan Textile Industry Diversified Layout Benefit

Since the start of the US China trade war, the textile industry has not been directly impacted by tariffs. However, the clothing brands do not dare to take the risk lightly, and diversify their purchasing risks. Taiwan textile operators who set up factories in Vietnam and other Southeast Asian countries believe that the trade war single effect has been fermented.

At present, the United States has imposed tariffs on 250 billion US dollars in Chinese goods, and clothes and shoes are generally excluded, and temporarily evade the impact of tariff aggravation.

However, the US China deadline for 90 days is not clear in the trade negotiations. If the negotiations fail, the US tariff rate on US $200 billion will rise from 10% to 25%, and the scope of additional tariffs will be extended.

TexworldUSA winter exhibition of the largest textile and textile exhibition in East America was held in New York on 21-23 January 2019, and 24 Taiwan manufacturers attended the exhibition.

Trade wars, tariffs and strategic procurement are among the topics discussed at this exhibition. Many manufacturers in Taiwan are also concerned about the impact of the US China trade war.

Li Yongli, deputy manager of the Sales Department of Hongyuan development (Shanghai) Limited, far east group, said that for the manufacturers, the psychological war between the US China trade war and the psychological war had great influence.

Although Hongyuan company, a main functional fabric manufacturer, has set up factories in Shanghai, half of its customers are in the US, including Nike, a sports apparel factory.

Hongyuan set up a factory for North American customers in North Carolina. The cloth was shipped to Haiti factories for Readymade Garments and shipped back to the United States for sale, enjoying duty-free treatment and gaining market edge advantages.

Li Yongli said that the sportswear and elastic fabrics are special, and the tailor should overcome the shrinkage problem. Even if the international trade situation is changeable, most brands still do not dare to change the order. After all, if the quality is out of order, the product can not be listed, and the amount of loss is probably larger than that saved after the pfer.

In recent years, many clothing brands in the United States have dispersed the risk and adopted the strategy of "China + Vietnam plus many countries", and the proportion of China has narrowed.

According to a recent survey by the American fashion industry association (USFIA), China imported 11% to 30% of its clothing and shoes in 2018, which is lower than that of the previous 30-50%.

Vietnam has become a base for many Taiwan producers because of preferential tax benefits from textile exports, including the exhibition of nylon yarn started 30 years ago.

2 years ago, the company crossed the foot knitted fabric market, focused on the Southeast Asian supply chain, and chose to set up factories in Vietnam.

Lin Yuru, deputy manager of the exhibition business, said that many of the customers who wanted to find suppliers outside China appeared in the exhibition. She thought it was a sign of a single effect in the US China trade war.

Yi Quan, which designs and produces embroidered lace fabrics, has set up factories in China. In the past, it was mainly exported to Europe, and in recent years, it focused on developing the US market.

Yung Shi Yin, general manager of Yi Quan, said that although some factories were set up in China, some of the plane embroidery was still produced in Taiwan. Even if the US imposed tariffs on Chinese textiles in the future, Yi Tsuen could also provide cloth from Taiwan to meet customers' needs.