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‘Everyone’s getting out of China’: How tariffs are changing fashion’s manufacturing landscape

on October 24, 2019, 10:10 am MDT

The “Made in China” label no longer has negative connotations, but brands are still looking to manufacture elsewhere.

Today, many high-quality goods are made in China, and it has become a major manufacturing hub for fashion brands from fast fashion to high luxury. But as the trade war between the U.S. and China heats up and additional tariffs are placed on goods from China, other countries like Vietnam and Cambodia have become enticing alternatives for brands. Rather than remain at the mercy of tariff laws, brands are choosing to relocate their manufacturing to these countries, despite the headache often involved. 

Just as President Trump instituted a new round of tariffs on Chinese goods in June, Bangladesh saw its sales of goods overseas rise to more than $40 billion this year from $29 billion in 2017, and Malaysia and Vietnam have seen similar increases in international orders.

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