Textiles and Apparel

Author: Kimberlie Freund
Senior International Trade Analyst

Change in 2015 from 2014:

• U.S. total exports: Decreased by $769 million (3.2 percent) to $23.2 billion
• U.S. general imports: Increased by $4.9 billion (4.0 percent) to $126.6 billion

U.S. total exports of textiles and apparel decreased in 2015, driven by a drop in domestic exports (by $1.1 billion or 5.4 percent) (table TX.1). The decline in U.S. domestic exports is largely attributable to the appreciation of the U.S. dollar vis-à-vis other currencies,¹ making U.S. exports relatively more expensive in foreign markets, as well as increased production capacity in China for certain products that compete with U.S. exports. The $4.9 billion increase in U.S. imports of textiles and apparel was driven in large part by increased imports of apparel, spurred by growth in consumer demand for apparel (table TX.2).

Table TX.1: Textiles and apparel: U.S. exports and general imports, by selected trading partners, 2011–15

	Million $
Item	2011	2012	2013	2014	2015	Absolute change,  2014–15	Percent change,  2014–15
U.S. exports of domestic merchandise:
China	1,242	1,238	1,350	1,231	964	-267	-21.7
Vietnam	43	67	62	96	93	-3	-2.9
Mexico	4,065	4,163	4,421	4,628	4,519	-109	-2.3
India	162	167	165	171	174	3	1.9
Canada	3,710	3,917	3,905	3,952	3,652	-300	-7.6
Bangladesh	20	28	22	21	22	1	5.4
Indonesia	132	141	177	167	131	-36	-21.5
Honduras	1,850	1,465	1,408	1,541	1,520	-21	-1.4
Pakistan	40	32	40	34	25	-9	-25.9
Cambodia	6	7	8	7	9	2	36.3
All other	8,206	8,017	8,144	8,190	7,852	-337	-4.1
Total domestic exports	19,475	19,241	19,703	20,036	18,962	-1,075	-5.4
Foreign exports	2,897	3,213	3,618	3,952	4,257	305	7.7
Total U.S. exports (domestic and foreign)	22,372	22,454	23,321	23,988	23,218	-769	-3.2
U.S. general imports:
China	44,884	45,061	46,469	47,220	48,910	1,690	3.6
Vietnam	7,088	7,519	8,607	9,821	11,149	1,328	13.5
Mexico	5,881	5,784	5,830	5,974	5,899	-74	-1.2
India	6,468	6,420	6,902	7,384	7,953	569	7.7
Canada	2,321	2,414	2,323	2,302	2,243	-60	-2.6
Bangladesh	4,725	4,675	5,158	5,054	5,654	600	11.9
Indonesia	5,567	5,421	5,457	5,284	5,416	132	2.5
Honduras	2,727	2,698	2,625	2,726	2,812	86	3.2
Pakistan	3,509	3,167	3,222	3,228	3,209	-19	-0.6
Cambodia	2,626	2,577	2,608	2,534	2,539	5	0.2
All other	28,052	28,124	28,809	30,162	30,785	622	2.1
Total general imports	113,848	113,860	118,012	121,689	126,569	4,880	4.0

Source: Compiled from official statistics of the U.S. Department of Commerce for the 2011–15 period. These reflect all official revisions of previously published data up to June 2015 (accessed February 10, 2016).
Note: Import values are based on Customs value; export values are based on free along ship value, U.S. port of export. Calculations based on unrounded data. The trading partners shown are those with the largest total U.S. trade (U.S. general imports plus U.S. domestic exports) in these products in the current year. Re-exports (also called foreign exports) are further defined in the “Frequently Asked Questions” (FAQs).

Table TX.2: Textiles and apparel: Leading changes in U.S. exports and imports, 2011–15

	Million $
Item	2011	2012	2013	2014	2015	Absolute change,  2014–15	strong>Percent change,  2014–15
U.S. domestic exports:
Decreases:
Fibers and yarns, except raw cotton and raw wool (TX001)	5,622	5,057	5,201	5,266	4,872	-394	-7.5
Fabrics (TX002)	6,303	6,350	6,446	6,631	6,347	-285	-4.3
Miscellaneous textile products (TX006)	2,740	2,807	3,025	3,117	2,920	-197	-6.3
Apparel (TX005)	3,348	3,470	3,440	3,436	3,338	-98	-2.9
Carpets and rugs (TX003)	1,027	1,057	1,071	1,060	974	-86	-8.1
Home furnishings (TX004)	436	500	519	526	511	-15	-2.8
All other	0	0	0	0	0	0	0.0
Total	19,475	19,241	19,703	20,036	18,962	-1,075	-5.4
U.S. general imports:
Increases:
Apparel (TX005)	85,797	85,226	88,250	90,464	93,927	3,463	3.8
Home furnishings (TX004)	9,250	9,294	10,099	10,373	10,984	612	5.9
Miscellaneous textile products (TX006)	6,628	6,850	6,920	7,341	7,862	522	7.1
Fabrics (TX002)	6,255	6,593	6,796	7,198	7,405	207	2.9
Carpets and rugs (TX003)	1,919	2,042	2,172	2,454	2,521	67	2.7
Fibers and yarns, except raw cotton and raw wool (TX001)	3,998	3,854	3,776	3,860	3,869	9	0.2
All other	0	0	0	0	0	0	0.0
Total	113,848	113,860	118,012	121,689	126,569	4,880	4.0

Source: Compiled from official statistics of the U.S. Department of Commerce for the 2011–15 period. These reflect all official revisions of previously published data up to June 2015 (accessed February 10, 2016).
Note: Import values are based on Customs value; export values are based on free along ship value, U.S. port of export. Calculations based on unrounded data.

 

U.S. Exports²

U.S. total exports of textiles and apparel declined by 3.2 percent ($769 million) to $23.2 billion in 2015. Domestic exports accounted for 81.7 percent ($19.0 billion) of total exports, with foreign exports (re-exports) accounting for the remainder (18.3 percent). For apparel, a larger share of total exports are re-exported (45 percent), as apparel companies are increasingly using U.S. foreign trade zones (FTZs) as distribution centers for Canada and Mexico.³

Despite a slight increase of 2.3 percent ($305 million) in re-exports of textiles and apparel in 2015, domestic exports decreased by 5.4 percent ($1.1 billion), with declines occurring in most product groups, particularly the two groups accounting for the largest share of domestic exports (fabrics, followed by yarns and fibers).

Fibers, yarns, and fabrics  are intermediate products used in the production of apparel and a myriad of other applications, including, for example, home furnishings, auto interiors, medical products, and industrial products.⁴ U.S. domestic exports of these intermediate products decreased by $679 million (5.7 percent).⁵ The decline was led by a 26 percent ($275 million) fall in exports to China.⁶ For a few key products, China's own domestic supply has increased and likely supplanted demand for U.S. exports. For example, a large part of the decline in U.S. exports to China was accounted for by a $185 million decline in U.S. exports of artificial filament tow, which is used in the production of cigarette filters.⁷ Chinese demand for U.S. artificial filament tow reportedly has dropped as China's domestic supply has increased.⁸ In addition, China instituted a new consumer tax on cigarettes in 2015 that also reportedly dampened demand for both cigarettes and the artificial filament tow used to make them.⁹ Similarly, in 2015, U.S. exports of nonwoven fabrics to China declined by 30.2 percent ($52 million) and to Japan by 40.4 percent ($27 million). These declines are also likely attributed to increased production of such products in China for both the Chinese market, and for China's exports to Japan.¹⁰

Mexico and Canada continued to be the largest U.S. markets for textiles and apparel in 2015, accounting for 37 percent ($8.1 billion) of U.S. domestic exports. Although exports to both countries declined in 2015, the share of U.S. exports going to these countries remained steady at 43 percent of the world total.

U.S. Imports

U.S. imports of textiles and apparel increased by 4 percent ($4.9 billion) in 2015 to $126.6 billion. U.S. imports of textiles and apparel have chiefly consisted of apparel for decades; apparel accounted for 74.2 percent of total U.S. textile and apparel imports in 2015. The increase in U.S. textile and apparel imports is largely due to growth in consumer spending on apparel; imports supply almost all the domestic apparel market.¹¹ The value of U.S. apparel retail sales grew by 2.1 percent and accounted for an increase of $24.1 billion in consumer spending on garments in 2015.¹²

China is the principal supplier of textiles and apparel to the U.S. market. In 2015, U.S. general imports of textiles and apparel from China totaled $48.9 billion, up 3.6 percent from 2015, following a smaller increase (1.6 percent) in 2014. China's share of the U.S. textiles and apparel import market remained almost identical in 2014–15 (38.6 percent in 2015 compared with 38.8 percent in 2014). Industry sources indicated that U.S. firms continue to rely on China for their apparel needs, though many brands and retailers are also diversifying their sourcing by expanding the number of countries from which they source products.¹³

Vietnam is the second-largest supplier of textiles and apparel to the U.S. market, nearly all of these imports consisted of apparel (96.3 percent). U.S. imports of textiles and apparel from Vietnam were up substantially, rising by 13.5 percent ($1.3 billion) to $11.1 billion in 2015. Vietnam has a competitive, export-oriented apparel manufacturing industry. U.S. imports of apparel from Vietnam have experienced several years of double-digit growth as U.S. brands and retailers have been building relationships with manufacturers in Vietnam in anticipation of the Trans-Pacific Partnership Agreement.¹⁴

U.S. imports of textiles and apparel from Bangladesh and India also continued to grow. In particular, U.S. imports of textile and apparel from Bangladesh saw the second-largest percentage increase after Vietnam, growing by 11.9 percent ($600 million) to $5.7 billion. Similar to Vietnam, apparel accounts for 96 percent of the value of U.S. imports of textiles and apparel from Bangladesh, a low-cost producer.¹⁵ According to a fashion industry benchmarking survey, Bangladesh is considered one of the top five global sources by brands and retailers for apparel.¹⁶ U.S. imports of textiles and apparel from India, the third-largest U.S. supplier of textiles and apparel, grew by 7.7 percent ($569 million) to $8.0 billion in 2015.