Asia–South America Textile Signals: Flexible Supply, Weaker Production and New Tariff Pressure

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China presents a more flexible supply chain

The 2026 China Textile and Apparel Trade Fair opened in New York on July 29 with more than 410 exhibitors from 19 countries and regions. More than 300 participating companies came from China.

According to the China National Textile and Apparel Council, 87% of participating Chinese companies could accept small-volume orders, while 38% held environmental certifications. Some suppliers also offered ready-stock products for faster delivery.

China’s textile and apparel exports reached approximately US$145.96 billion in the first half of 2026, up 1.4% year on year. Exports to the United States increased 12.5% to US$24.37 billion.

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Vietnam focuses on materials and stronger local supply chains

Vietnam’s Ministry of Industry and Trade reported on July 29 that the country’s textile industry still produces only around 50% of required input materials locally. Domestically manufactured fabric satisfies approximately 36% of demand.

Reliance on imported yarn, fabric, chemicals and accessories leaves manufacturers exposed to supply disruption and can complicate compliance with rules of origin under newer free-trade agreements.

Vietnam is using exhibitions and business-matching programmes to connect garment factories with fibre, weaving, dyeing, finishing and accessory suppliers while encouraging product development and domestic brand-building.

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South Korean garment demand improves, but production remains uneven

South Korea’s apparel imports increased 2.27% to approximately US$5.66 billion during January–June 2026. Imports of knitted apparel grew faster than non-knitted garments.

At the same time, exports of South Korean man-made filament products and knitted or crocheted fabrics weakened. Local reporting also showed that clothing consumption improved in June while domestic apparel production fell sharply.

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Argentina’s textile sector loses around 1,200 jobs per month

Formal textile employment fell to 95,094 positions in April 2026, representing 15,468 fewer jobs than a year earlier. Industry activity declined 25.6% year on year, while factories were using only 42.2% of available machinery and production capacity.

Around 330 textile-related factories and registered establishments reportedly disappeared over the same one-year period.

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Peru’s exporters face a higher tariff in their main market

Peruvian textile and apparel exports fell 5.9% to approximately US$674 million through May 2026. Exports to the United States declined 10.2%.

The United States receives around 49% of Peru’s textile and apparel exports. A new tariff arrangement raises the applicable rate for affected Peruvian products from 10% to 12.5%.