Chinese exports of knitted fabrics have been hit by US duties in the latest round of tit-for-tat tariffs imposed in the countries’ ongoing trade war. By Keith Nuthall.

China exported US$470m worth of knitted and crocheted fabrics to the US in 2017, according to international trade data.

The US Trade Representative’s (USTR) office said that America will be imposing 10% tariffs on a wide range of knitted products exported from China. These duties have been imposed from 24 September, rising to 25% on 1 January (2019).

They include knitted and crocheted fabrics of wool, cotton, silk, artificial fabrics and more, in the ‘looped pile’ style and others; warp knit fabrics, including open‐worked fabrics; knitted rubberised textile fabrics of cotton; knitted textile wicks; and knitted carpets.

China retaliated by announcing 25% duties on a wide range of knitted fabrics and clothing, making good on threats that it had made in the past if the US targeted its knitwear exports.

The US exported much less knitted and crocheted fabrics to China in 2017, but the trade was still significant – at US$13m. And, its knitted clothing exports to China were not insignificant – with US$11.4m worth of women’s and girls’ knitted or crocheted suits, ensembles, jackets, dresses, skirts, trousers, overalls, breeches and shorts being exported in 2017.


The US exported much less knitted and crocheted fabrics to China in 2017

More international knitwear regulatory news

  • A new comprehensive set of rules of origin have been agreed in the US Mexico Canada Agreement (USMCA) trade deal that will replace the 1994 North American Free Trade Agreement. They lay down the conditions for when clothes knitted or sewn to shape in a participating country can be traded with no or reduced duties under the USMCA, if the yarn or knitted panels used were imported from outside the three-country block. Some rules are very detailed – for instance, apparel cannot receive preferential tariffs under certain circumstances if made chiefly of circular knit fabric using yarn number equal to or less than 100 metric number.
  • The European Commission is to spend €7m from the European Globalisation Adjustment Fund (EGF) to help 730 former workers within the Portuguese clothing sector find jobs – a key knitwear hub in Europe. The money will be spent on helping them improve their skills, including vocational training, and assist former workers wanting to start a business. According to World Trade Organisation statistics, knitwear has historically accounted for around 40% of Portuguese clothing and textile exports, by value.
  • The European Union (EU) has signalled it will be watching new political turmoil in Sri Lanka to see if it leads to breaches of EU human rights standards the country promised to follow when regaining its GSP+ (generalised scheme of preferences) access to European markets last June (2017). The key South Asian knitwear exporter’s prime minister Ranil Wickremesinghe has been sacked by President Maithripala Sirisena, who subsequently appointed controversial former President Mahinda Rajapaksa as PM.
  • The Haitian government has increased this Caribbean knitwear manufacturing centre’s minimum wage with earnings in export-orientated assembly industries and other manufacturing industries – covering garment making. Here, minimum pay rates have increased 20% from 350 gourdes (US$5) to 420 gourdes (US$6) for an eight-hour working day.