Tariffs Should Hasten Apparel Manufacturing’s Move Out Of China And Back To U.S., Study Says

Oct 12, 2018

Almost 80% of the survey respondents also said it's "highly likely" or "somewhat likely" that "trade agreements change offshore-onshore equation."

The threat of more tariffs on imports from China “will further support nearshoring," Karl-Hendrik Magnus, a McKinsey partner, said at the Sourcing Journal Summit in New York on Thursday, when he released the survey findings in a study titled “Is Apparel Manufacturing Coming Home?”

In fact, when asked “what will be your company’s most important nearshore market by 2025,” 30% of respondents cited the U.S. as the biggest potential winner when it comes to “nearshoring” for North America. Mexico followed with 20%.

For Europe, Turkey came out as the top choice, according to the survey.

“What’s happening in D.C. is accelerating all the conversations” about moving production back to or near the U.S., Erika Swan, Reebok’s VP of product operations, said at the event, which gathered some 400 industry executives from companies that also included Under Armour, Calvin Klein parent PVH and Amazon.

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