Tariff Updates
China
As of October 7, 2025, the U.S. has imposed new tariffs on China's textiles industry, escalating previous Section 301 tariffs. Throughout 2025, tariffs on all Chinese goods rose from 10% in February to 20% in March, before a dramatic escalation in April brought the total reciprocal tariff rate to 145%. Concurrently, the De Minimis Exemption, which allowed duty-free imports for shipments under $800, was eliminated for goods from China. A temporary 90-day agreement starting May 14, 2025, has lowered the rate to 30%.
Existing Trade Agreements
In 2024, the U.S. imported approximately $107.72 billion in textiles and apparel, with China as the largest supplier. Imports from China were valued at $26.07 billion, accounting for a 24.2% market share. Another report indicated total U.S. imports of finished fashion, textiles, and leather goods reached $132.442 billion in the same year. This trade was historically conducted under World Trade Organization (WTO) principles but is now severely impacted by unilateral U.S. tariffs, which have prompted China to file a dispute with the WTO.
New Tariff Changes
The 2025 tariffs represent a substantial escalation compared to the previous Section 301 policy. The prior tariffs were targeted at specific lists of goods with rates ranging from 7.5% to 25%. In contrast, the 2025 policy applies a much broader and significantly higher rate, peaking at 145%, to virtually all imports from China. A critical change is the elimination of the de minimis exemption for China, which subjects all low-value shipments to tariffs, unlike the previous policy. This reflects a far more aggressive trade stance than the targeted measures of the past.