Global trade is navigating a complex landscape of tariff shifts, shifting sourcing strategies, and mounting sustainability pressures. From Asia to Latin America, exporters are adjusting to new realities while regulators and consumers demand greater accountability.
China
The US–China tariff truce has been extended for 90 days, offering temporary relief to exporters and buyers. Bilateral shipping links with Peru boosted trade nearly 35%, while commodity trends diverged: cotton and polyester prices eased but linen surged.
China’s PMI slipped in July, though CPI rebounded, and the IMF upgraded growth forecasts to 4.8%. Trade rose 3.5% in the first seven months, driven by high-tech exports, though FDI inflows weakened despite a rise in new foreign-invested firms.
Taiwan
Taiwan’s exporters face pressure from 20% US tariffs and an appreciating currency, threatening machinery and faucet industries. Even so, exports surged 28% in the first seven months, with July recording the fastest growth in 15 years. Capital inflows also reached a four-year high.
Vietnam
Vietnam’s exports climbed 15% to US$262 billion, powered by strong US demand. Imports grew 18%, leaving a healthy trade surplus. Apparel exports rose 9% despite new US tariffs. FDI inflows remained robust at US$24 billion, with manufacturing dominating.
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Indonesia
Despite weaker PMI readings, Indonesia’s GDP outpaced expectations at 5.1%. US buyers are shifting more sourcing to Indonesia, supported by tariff concessions on copper and talks on nickel and palm oil. US-backed investments in refineries and critical minerals underline deepening ties.
Cambodia
A new US tariff framework is making Cambodia more competitive, expected to attract fresh investment and jobs. Exports grew 18%, with China remaining the top trade partner. Infrastructure expansion in Sihanoukville and new auto assembly rights point to diversification.
Thailand
Thai exports grew 15% in H1, led by shipments to the US and China, though growth is projected to moderate. Inflation remains subdued, but consumer confidence fell to a two-year low amid tariff pressures and political uncertainty.
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Bangladesh
The US reduced tariffs to 20%, strengthening Bangladesh’s export edge. Apparel shipments to the US jumped 25%, while plans are underway to triple US cotton imports. Inflation eased below 9%, though Chittagong port congestion continues to disrupt supply chains.
India
India was hit by a sharp tariff hike to 50% on most exports to the US, affecting textiles, jewellery, and machinery. Meanwhile, New Delhi finalized a UK trade deal set to double bilateral trade and is negotiating new agreements in Latin America. Domestically, weak yarn demand and lobbying for a uniform GST highlight challenges for mills.
Pakistan
Pakistan’s textile exports rose 7.4%, led by garments and knitwear, while yarn exports strengthened on US and Brazilian cotton imports. However, domestic unrest over GST reforms and weak cotton arrivals pose risks ahead.
Latin America
Mexico retained tariff-free access under USMCA, while Central America maintained reciprocal 10% tariffs. Exports grew 6.5% in El Salvador and 2% in Guatemala, showing steady but uneven performance across the region.
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Sustainability & Compliance
Sustainability remains in sharp focus as regulators and watchdogs tighten oversight.
Textile Exchange released new guidance on responsible use of LCA data, emphasizing mill-level decarbonization, as mills account for over half of fashion’s emissions.
Cascale’s 2025 Scorecard revealed stalled progress in responsible sourcing, with declines in planning and forecasting practices.
Regulatory scrutiny intensified: Shein and Armani were fined in Europe for misleading environmental claims.
In the US, the EPA is phasing out PIP (3:1), a widely used textile chemical, creating compliance challenges but also opportunities for brands to strengthen sustainability commitments.
Conclusion
Global trade is being reshaped by a mix of tariff realignments, shifting sourcing strategies, and rising sustainability pressures. While some markets, such as Vietnam and Bangladesh, are seizing new opportunities, others like India face steep challenges from tariff hikes. Across the supply chain, sustainability and compliance remain non-negotiable, with regulators and consumers demanding greater accountability. For businesses, agility, diversification, and responsible practices are becoming the key drivers of long-term competitiveness.
