US tariffs favor Asian textile makers, exclude Thailand

On October 16, the United States Department of Agriculture announced a new initiative that links preferential tariff treatment for apparel imports to the purchase of American cotton. The policy, set to begin in 2027, includes Bangladesh, Cambodia, Indonesia, and Malaysia but excludes Thailand.

The USDA's decision highlights how Washington is using trade policy to influence both the location of clothing manufacturing and the sourcing of materials. For Thailand, which competes with these countries in international textile markets, the implications go beyond American cotton.

Thailand has an opportunity to strengthen its position in global apparel manufacturing. However, attracting foreign orders and maintaining competitive production costs will not be sufficient. The country must develop industrial capabilities, technological expertise, and a skilled workforce to become a more valuable participant in international fashion supply chains.

For decades, fashion companies have treated manufacturing primarily as a procurement decision. Brands designed products, selected suppliers, negotiated prices, and shifted production to countries offering the most competitive combination of labor costs, infrastructure, and market access.

Governments are increasingly viewing manufacturing differently, using trade incentives, environmental regulations, industrial investment, and workforce programs to shape what is produced, where it is produced, and which industrial capabilities endure. The European Union is pursuing its own strategy, launching a Digital Product Passport Registry to improve transparency on product materials, sustainability, and supply chains.

Textiles are among the priority categories for future requirements, with textile-specific rules under development. These initiatives will increasingly favor manufacturers that can document their materials, production processes, and environmental performance, requiring technological capabilities beyond conventional garment assembly.