In May 2025, the value of clothing imported from China to the United States plummeted to $556 million, reaching its lowest monthly record in 22 years, largely affected by the high tariffs imposed by the United States. According to the U.S. International Trade Commission (USITC), this figure not only significantly decreased from $796 million in April but also hit its lowest level since May 2003, marking the fourth consecutive monthly decline.
For years, China has been a major source of clothing imports for the United States. However, with the ongoing tension in U.S.-China trade relations, China’s position in the U.S. clothing market is rapidly declining.
In April 2025, U.S. President Trump announced imposing tariffs as high as 145% on Chinese clothing products as part of the policy goal to promote the “reshoring of manufacturing to the U.S.”
The tariff measures have pushed many U.S. brands and retailers to expedite the reorganization of their supply chains, reducing reliance on Chinese factories. Clothing companies are turning to alternative suppliers in other Asian regions such as Vietnam, Bangladesh, India, to circumvent the constantly rising import costs.
Sheng Lu, a professor of fashion and apparel studies at the University of Delaware, pointed out that the sharp drop in U.S. imports of clothing from China in May 2025 is not a natural occurrence.
Despite the recent trade truce between the U.S. and China, which reduced tariffs on China to 55%, including a 20% tariff on fentanyl, a 10% baseline tariff, and the pre-existing 25% rate under the Trump administration, most mainstream U.S. apparel companies still plan to further reduce their reliance on Chinese suppliers and even consider withdrawing entirely from the Chinese market.
Meanwhile, the trend of shifting the U.S. clothing supply chain continues to accelerate. Data provided by the inspection agency QIMA shows that in the second quarter of 2025, U.S. companies’ procurement from China decreased by almost a quarter compared to the same period last year, while procurement demand in Southeast Asia grew significantly by 29%.
QIMA’s report notes that the shift of supply chains out of China by U.S. companies is not new, with Southeast Asia’s share in the U.S. supply chain steadily increasing since mid-2023. However, tariffs have evidently expedited this process.
Mexico has also emerged as a beneficiary of the restructuring of U.S. supply chains. USITC data shows that in May, the total value of clothing imported from Mexico to the U.S. reached $259 million, a 12% increase from the same period last year.
Overall, the total value of U.S. imports from China in May decreased to $19.3 billion, a 43% drop from the same period last year, reflecting a rapid contraction not only in the clothing industry but in overall U.S.-China trade.
During the same period, the U.S. government’s tariff revenue reached a new high. In May 2025, U.S. tariff revenue amounted to $24.2 billion, nearly quadrupling from the same period last year and growing by over 25% from April.
This figure represents the first complete monthly statistics of increased tariffs by the Trump administration since April. Some analysts believe this provides short-term support for the U.S. government’s finances.
The U.S. Treasury will release the fiscal balance for June on the 11th, with expected significant growth in tariff revenue. Treasury Secretary Scott Bessent stated during a White House Cabinet meeting on Tuesday that tariff revenue stands at approximately $100 billion since the beginning of the year. With the announcement of tariff measures, this figure is expected to reach $300 billion by the end of this year.
QIMA indicates that in the coming months, the U.S. supply chain may face new challenges as most non-Chinese countries’ temporary tariff measures are set to expire, coinciding with the Christmas holiday purchasing season.