TAIPEI (Taiwan News) — Taiwanese textile and apparel manufacturers said US tariffs continue to weigh on their industry, but many remain cautiously optimistic about a recovery as clients stay in business despite weaker order volumes.
Speaking at the International Apparel Sourcing Show at the Javits Center in New York City, which concludes Thursday, industry representatives said the tariff burden has largely been absorbed by fabric and apparel manufacturers. They added that a downturn in the economic cycle has reduced orders during a transitional period, though signs of longer-term demand remain, per CNA.
With support from the Taiwan Textile Federation, several Taiwanese companies participated in one of the most important apparel sourcing shows in the US this week, showcasing functional and fashion-forward fabrics, apparel, and accessories to attract buyers and expand their North American presence.
Last April, US President Donald Trump imposed a new round of global tariffs. After multiple rounds of negotiations between Taiwan and the US, the tariff rate on Taiwanese goods was lowered from 20% to 15%, aligning it with rates applied to Japan and South Korea.
Cheng Ho-feng (鄭禾豐), who works with a textile manufacturer specializing in outdoor apparel and functional fabrics, said the tariffs have had a significant impact on business, particularly in the US market. He said higher prices have strained American consumers, leading to weaker retail sales and a subsequent drop in orders.
Cheng described the current situation as a cyclical, transitional period, adding that while orders are down sharply, customers have largely remained, raising hopes of a rebound as conditions improve.
He said retailers are increasingly concerned about inventory buildup, which has become a major issue for brand operators. Exporters have also had to help absorb tariffs, as many Taiwanese manufacturers operate factories in Vietnam, Indonesia, and Cambodia, where tariffs can reach around 20%. In such cases, fabric suppliers typically absorb about 5% of the tariff burden, with apparel manufacturers also contributing.
Despite near-term challenges, Cheng said the global sportswear and functional apparel market continues to grow. Taiwanese companies, he added, are strengthening long-term partnerships with major brands while developing new functional fabrics and expanding into diversified markets, including fashion and sportswear.
The International Apparel Sourcing Show is North America’s largest textile sourcing event, drawing major companies and brand buyers from across the US East Coast. The TTF regularly leads industry delegations to the show, with some Taiwanese firms also participating through an online exhibition platform that allows buyers and suppliers to continue meetings for up to 30 days after the event.
Garment manufacturer Chen Chih-Jung (陳志榮) said inflation and the broader economic slowdown remain key factors, driving up prices and suppressing orders. He added that brands must adapt to changing consumer behavior, a shift that continues to ripple through the global supply chain.
