Where do I begin? The global apparel export industry is on the verge of a seismic shift, driven by economic forces, shifting trade policies, and the rapid rise of AI, IoT, and automation. The future of exports is being rewritten, echoing the upheaval that has already rocked the automobile and manufacturing sectors worldwide.
At the heart of this transformation is the evolving global economy. The United States, the world’s largest economy by nominal GDP, continues to shape global trade and industry. While China may lead in purchasing power parity, the U.S. remains the dominant force in absolute dollar terms. Efforts to bring manufacturing jobs back to the U.S., combined with strategic moves to secure resource-rich nations, signal a retreat from traditional globalization—this time with a focused and deliberate strategy.
Donald Trump’s trade policies signal a shift toward reducing reliance on major exporters like China—even impacting some of the U.S.’s closest allies. While this poses challenges for apparel exporters in Least Developed Countries (LDCs), it also creates opportunities for those that can adapt swiftly. Success will depend on strengthening competitiveness, meeting evolving compliance standards, and navigating an increasingly unpredictable global trade landscape. As U.S. brands rethink their sourcing strategies, apparel suppliers in LDCs that can rise to the challenge will find new openings in the U.S. market.
A Reuters report highlights that during a meeting with top U.S. CEOs, including Walmart’s leadership, Trump proposed cutting the corporate tax rate from 21% to 15% for U.S. companies that manufacture domestically. He also defended tariffs on imports, hinting they could rise further. As a result, many U.S. retail brands are showing increased interest in reshoring or relocating production. However, with future trade policies still uncertain, many remain cautious.
Logically, if corporate taxes drop to 15%, it could reduce reliance on imports, particularly for low-SMV items (those under 20 SMVs). Lower domestic tax rates, coupled with the elimination of tariffs (where applicable), streamlined logistics, increased efficiency, automation, and a highly skilled workforce, could make U.S.-based production more cost-competitive than overseas manufacturing.
