US Textile & Apparel Imports Drop 2% to $88.9 Billion as Supply Chain Diversification Accelerates

The American textile and apparel market is experiencing a notable shift. Between January and October 2025, US textile and apparel imports declined 2.1% year-over-year, reaching $88.9 billion. This dip reflects more than just weaker consumer demand—it signals a fundamental restructuring of global sourcing strategies. As brands and retailers navigate rising costs, tariff pressures, and supply chain vulnerabilities exposed during recent disruptions, the traditional dominance of certain suppliers is being challenged. Understanding these trends is crucial for industry stakeholders, investors, and businesses planning their sourcing roadmaps for the years ahead.

The Numbers Behind the Decline: What's Driving Softening Demand

The 2.1% decrease in textile and apparel imports stems from two primary factors: softer apparel demand and weaker non-apparel textile shipments. American consumers, facing economic uncertainties and inflation concerns, have adjusted their spending habits, particularly in discretionary categories like fashion. Retailers are responding with cautious inventory management, ordering smaller quantities and focusing on faster-turning basics rather than trend-driven pieces. Meanwhile, non-apparel textile segments—including home furnishings, industrial fabrics, and technical textiles—have experienced reduced shipments as commercial and residential construction activity moderates. This dual pressure has created a more conservative import environment compared to the post-pandemic surge when pent-up demand drove record shipment volumes. The data from the Office of Textiles and Apparel provides valuable insights into these shifting consumption patterns and their impact on global trade flows.

China's Declining Share and the Rise of Alternative Sourcing Hubs

While China maintains its position as the largest supplier of textiles and apparel to the United States, its market share has fallen sharply during the January-October 2025 period. Trade tensions, tariff structures, and rising labor costs in Chinese manufacturing hubs have accelerated buyer diversification strategies that began years ago. Vietnam, Bangladesh, and Cambodia have emerged as the primary beneficiaries of this shift, collectively capturing significant import volume as American brands de-risk their supply chains. Vietnam's sophisticated manufacturing infrastructure and favorable trade agreements make it particularly attractive for technical apparel and synthetic textiles. Bangladesh continues to dominate the value segment with competitive pricing in cotton garments, while Cambodia offers stability and preferential access through GSP (Generalized System of Preferences) arrangements. This isn't simply a temporary adjustment—it represents a structural transformation in global textile supply chains that's likely to intensify as companies prioritize resilience over cost alone.

Strategic Implications for Businesses and the Future Outlook

For apparel brands, retailers, and textile manufacturers, these import trends carry significant strategic implications. Supply chain diversification is no longer optional—it's essential for managing geopolitical risk, cost volatility, and customer expectations around sustainability and transparency. Companies should evaluate multi-country sourcing strategies, invest in supplier relationships beyond traditional hubs, and consider nearshoring opportunities in Central America and the Caribbean. The current market conditions also present opportunities for domestic textile manufacturers to capture niche segments where quality, speed-to-market, or sustainability credentials justify premium pricing. Looking ahead, the trajectory of US textile and apparel imports will depend on consumer confidence, tariff policies, and how quickly alternative suppliers can scale capacity and capabilities. Businesses that adapt proactively to this evolving landscape—balancing cost efficiency with supply chain resilience—will be best positioned to thrive in an increasingly complex global marketplace.

Conclusion

The 2% decline in US textile and apparel imports to $88.9 billion through October 2025 marks more than a temporary market correction—it reflects a fundamental realignment of global sourcing dynamics. China's diminishing market share, coupled with the rapid ascent of Vietnam, Bangladesh, and Cambodia, underscores an industry in transition. As tariffs, labor costs, and supply chain resilience drive decision-making, businesses must embrace diversification strategies and remain agile in their sourcing approaches. The companies that successfully navigate this shift will build more resilient, sustainable, and competitive supply chains for the decade ahead.