The United States has experienced a 3.17% decline in its textile and apparel exports, totaling $11.5 billion in the first half of 2024. This downturn continues a trend that began in the first quarter and slightly decelerated in the subsequent months, following a significant drop recorded in 2023. Concurrently, imports have also slowed in response to recent inflationary pressures.
Mexico and Canada remain the primary markets for U.S. exports, purchasing $6.1 billion and $4.2 billion in textiles and apparel respectively during the first half of the year. Orders from the European Union follow, with $1.2 billion, marking a significant 11.2% decrease over the six months, as European clothing consumption continues to be impacted by inflation.
Other major clients include Honduras and China, with China maintaining a steady order level of $361 million, placing it ahead of the Dominican Republic, the United Kingdom, and Japan in terms of market size.
On the import side, the U.S. saw a 3.58% reduction in textile and apparel imports, totaling $49.3 billion for the first half of the year. This contraction is a direct consequence of inflation, which has raised concerns among both consumers and brands, though there have been signs of easing since July. China remains the top supplier to the U.S., with $11.1 billion worth of goods in the first six months.
Following China are Vietnam with $7.2 billion, India with $4.7 billion, and Bangladesh, which has seen a significant decline of 10.6% to $3.5 billion. The European Union ranks fifth among suppliers with $2.8 billion, experiencing a 2.9% decrease, ahead of Indonesia, Mexico, Cambodia, and Pakistan.
These figures are contextualized by a 22% drop in U.S. apparel imports noted in 2023, from which European luxury goods had partially been exempted.
Factors currently affecting trade levels include freight costs. Security concerns regarding the Suez Canal have driven up container prices, while reduced water levels in the Panama Canal have made journeys between Asia and the American East Coast more expensive and prolonged.
Source: https://ww.fashionnetwork.com/