A brief discussion on the impact and countermeasures of small and medium-sized garment factories under US tariffs
Jul 03, 2025
In the global trade pattern, the changes in US tariff policies are like a storm, which has had a profound impact on many small and medium-sized garment factories. As an important global clothing consumption market, the US's tariff increase has caused many small and medium-sized garment factories to face unprecedented difficulties.
From the perspective of cost: the increase in tariffs directly leads to a sharp increase in export costs. Small and medium-sized garment factories themselves have meager profits. After the surge in tariffs, the cost of a single product may increase by more than 15%, and the processing profit margin, which was originally not high, is further compressed. For example, a garment that originally cost 100 yuan and made a profit of 10 yuan and was exported to the United States, assuming that the tariff is increased from the original 10% to 25%, then the cost will increase by 15 yuan, the profit margin will be severely eroded, and even losses may occur. This puts the factory in an extremely passive position in price negotiations. If the price is not raised, the profit will be difficult to maintain; if the price is raised, it may lose the price advantage, resulting in a decrease in orders.
In terms of order volume: due to the price disadvantage caused by rising costs, some US buyers may turn to other countries or regions with lower costs to purchase clothing. Some small and medium-sized garment factories that originally relied on the US market have seen a sharp drop in orders, and are even facing the crisis of "order interruption". The long-term reliance on the US market for a single customer structure and market layout has revealed its drawbacks under the impact of tariffs, and the survival and development of the factories are seriously threatened.
In such a predicament, the introduction of automated sewing machines has become an important means for small and medium-sized garment factories to cope with the crisis. Automated sewing machines have numerous advantages and can effectively alleviate the pressures faced by the factories.
I. Improving Efficiency
It can greatly enhance production efficiency. Traditional sewing machines rely on manual operation, and their speed and efficiency are limited by the skill level and energy of the workers. In contrast, automated sewing machines, through preset programs, can continuously and rapidly complete sewing tasks. For example, a fully automatic template sewing machine can reach a speed of 1,800 to 2,700 stitches per minute and can sew multiple pieces simultaneously. Compared to traditional sewing machines, this can significantly reduce the sewing time per garment. In large-scale order production, it can notably increase overall production efficiency, meet the timeliness requirements for order delivery, and help factories complete more orders within a limited time. To some extent, this can compensate for profit losses caused by tariffs.
II. Enhancing Product Quality
Automated sewing machines contribute to the stability of product quality. With the aid of precision sensors and control systems, they can accurately control key parameters such as stitch length, seam pattern, and pressure, ensuring that the sewing quality of each product meets a uniform high standard and reducing the rate of defective products. For garment orders with high requirements for sewing craftsmanship, the precise control advantages of automated sewing machines are more pronounced, enabling the production of higher-quality products. This enhances the factory’s credibility and competitiveness in the eyes of customers, helping the factory to secure more high-quality orders, especially from mid-to-high-end clients. As a result, it increases the added value of products and alleviates cost pressures.
III. Solve the problem of recruiting workers and reduce labor costs
Automated sewing machines can reduce dependence on skilled workers. In traditional clothing production, skilled workers are valuable resources. Difficulties in recruiting workers and high labor costs have long plagued small and medium-sized clothing factories. Automated sewing machines are relatively simple to operate, and ordinary workers can get started after a short period of training. They can alleviate the problem of employment and reduce labor costs to a certain extent. Taking the automated sewing machine using templates as an example, it can enable all workers to reach a similar technical level within one working day, and the production qualification rate can reach 100%, which solves the problem of difficulty in recruiting skilled workers for clothing companies for a long time, and also reduces production fluctuations caused by worker mobility.
Except automated sewing machines, small and medium-sized clothing factories can also take a series of supporting measures to cope with the impact of US tariffs.
In terms of market expansion: Implement a market diversification strategy and no longer rely too much on the US single market. Actively explore emerging markets by participating in international exhibitions and using cross-border e-commerce platforms. By implementing this strategy, a clothing manufacturing base has achieved a significant year-on-year increase in exports to emerging markets, effectively offsetting the impact of the shrinking US market. At the same time, optimize the customer structure, shift from relying on low-profit orders from large chain supermarkets to serving mid-to-high-end customer groups such as designer brands and fast fashion buyers, and increase product profit margins.
At the product innovation level: increase R&D investment and develop differentiated products. For example, a knitting company invested in the introduction of an intelligent hanging system to shorten the order response cycle, and at the same time developed functional products such as antibacterial and deodorizing, and seamless cutting, and successfully entered the high-end clothing market. Through cooperation with professional laboratories and other means, strengthen fabric innovation, launch a number of new functional fabrics every year, increase product added value, and enhance product competitiveness in the international market to cope with the cost increase caused by tariffs
From the perspective of industry collaboration: Industry organizations can take the lead in establishing a "trade barrier response alliance" to integrate professional resources such as law, finance, and market research to provide small and medium-sized enterprises with one-stop services such as tariff planning, compliance review, and market alternatives. Enterprises within an industrial cluster can also unite to share resources and jointly respond to crises. For example, several companies in an industrial cluster jointly established a cross-border e-commerce operation center, shared overseas warehouse resources and traffic data, and created a special clothing area on the international e-commerce platform. The sales in the first quarter exceeded expectations, and the overall risk resistance ability was improved by banding together.
Faced with the impact of US tariffs, small and medium-sized garment factories are expected to break through the difficulties and find new development opportunities by introducing automated sewing machines to improve production efficiency and product quality and reduce labor costs. At the same time, they will cooperate with a series of measures such as market diversification, product innovation, and industry collaboration. They will regain their foothold in the global apparel industry competition and achieve sustainable development.