On 4th March, US President Donald Trump quadrupled the tariff on all Chinese imports to 20 per cent. UK fashion producers have expressed their opinions on how retailers are reducing the additional costs by shifting production to Bangladesh, India and Vietnam.
All Chinese items will be subject to the new 20 per cent tariff since the “de minimis” restrictions, which exempt tax payments on goods valued under US $ 800, have been removed.
The standard duty rates in the United States are in addition to the additional 20 per cent. The current 17.5 per cent tax on Chinese-made goods will rise by an additional 20 per cent to an astounding 37.5 per cent per item.
According to a supplier of outerwear who divides his business between China and Vietnam, impacted merchants have asked him to transfer any production done in China to his plants in Vietnam.
To lessen the impact of the tariffs, some Chinese firms are attempting to “help on pricing” by lowering supplier costs.
In order to successfully claim that the product was created outside of China, suppliers have been sourcing Chinese fabric while manufacturing the product or adding finishing touches in other countries. This is one strategy they have been trying to get around China-induced tariffs.
Chinese firms are establishing plants in neighbouring nations like Vietnam and India in an effort to diversify their production bases.
Bharat Tex Special Report 2026 
