[Source/Observer Network Qi Qian] US President Trump has been promoting the return of manufacturing, but recently said that the US "does not intend to produce sports shoes and T-shirts."
On May 27, Hong Kong's South China Morning Post reported that this statement seemed to relieve Vietnam and Chinese clothing manufacturers, especially a "good omen" for Vietnam's large textile industry. However, companies no longer trust what Trump says.
Many operators said they currently have no intention of changing plans based on Trump's remarks and will continue to focus on markets outside the US. The report stated that in recent weeks, Trump's tariff policies have changed daily, greatly affecting global markets with immense uncertainty. Some operators said, "What if they change their minds tomorrow?" Now, "no one dares to bet on the US market" in the apparel manufacturing industry.
Data shows that last year, nearly 17% of China's textile and apparel exports went to the US. Vietnam was much higher, reaching 38%.
As the world's two largest apparel export centers, Chinese and Vietnamese enterprises still face immense uncertainty. In the 90-day suspension period of tariffs, Trump and US officials' recent remarks seem to be good news for apparel exporters in both countries.
"We do not intend to produce sports shoes and T-shirts," Trump said locally on the 25th, according to Reuters. "We can do well elsewhere. We want to produce chips, computers, and many other things, as well as tanks and ships."
Trump said, "We do not intend to produce sports shoes and T-shirts," video screenshot.
The American Apparel and Footwear Association responded by saying that tariffs are detrimental to the industry. Chairman Steve Lamar of the association stated in a statement: "97% of our apparel and footwear products rely on imports, and these products are already among the highest taxed industries in the US... Higher tariffs will only increase input costs for US manufacturers, raise product prices, and harm low-income consumers."
US Treasury Secretary Beisente previously made a similar statement. On April 29, Beisente said that the US needs precision manufacturing, while the textile industry is outdated. This statement immediately drew criticism from Beisente, who was seen as looking down on the textile industry. The National Textile Organization emphasized that the US textile industry produced more than 8000 different products for the military last year and employed over 470,000 workers.
"Textile exporters in Vietnam can now breathe a little easier," Dan Martin, an international business consultant at Asia consultancy Dezan Shira & Associates, said, indicating that Trump's remarks mean that "at a moment when industrial policy is becoming increasingly realistic, the Trump administration seems to have accepted the fact that not every factory needs to fly the American flag."
However, Martin then added that Vietnam's $44 billion garment industry has already had to endure significant turmoil, and local businesses are well aware that Trump's trade policies often prioritize political image over policy consistency.
He said, "Unless these reassuring remarks are supported by specific policies, they are unlikely to modify risk assessments or contingency plans."
On April 2, Trump brandished the tariff stick worldwide, implementing so-called "reciprocal tariffs." However, after causing a massive shock in global markets, Trump took measures to ease the global trade war, announcing a 90-day suspension of tariffs while maintaining a 10% baseline tariff. On May 12, breakthroughs were achieved in Sino-US trade talks, and both sides agreed to reduce tariffs by 115%.
However, the South China Morning Post pointed out that the future direction of US tariff policies remains unclear. Trump threatened various countries that if no trade agreements were reached during the suspension period, tariffs would soar back to previous levels.
Zhou, who runs a bedding and curtain factory in Zhejiang Province, said she does not feel relieved by Trump's remarks but rather very uncomfortable.
"The constant changes in US policies are the worst kind of uncertainty for doing business," Ms. Zhou said. "Today they might say that it is unnecessary for textile manufacturing to return, but what if they change their minds tomorrow? Now, no one in our industry dares to bet on the US market anymore."
Ms. Zhou has been providing products to US customers since 2014, but over the years, she has steadily reduced her investment in the US market. She said that Trump's recent tariff hikes accelerated this process, and currently, the US market accounts for less than a quarter of her sales.
Winnie Lam, Secretary-General of the Vietnam-Hong Kong Business Association, told the South China Morning Post that many Chinese Hong Kong and mainland investors in Vietnam have also taken similar approaches, expanding markets outside the US. She said that Trump's remarks would only provide "temporary relief" for Vietnamese exporters, and many companies are "taking clear actions to diversify and reduce dependence on the US market."
"In short, the world belongs to them now, and they must bravely take steps to enter other markets which were already in their consideration and are now accelerating expansion," Winnie Lam said. "The textile industry is showing through action that the US cannot make them go back."
Workers ironing clothes in a Vietnamese factory, US media
The report mentioned that the Vietnamese government is making efforts to persuade Trump to lower tariffs.
Data shows that foreign capital has poured into Vietnam this year. So far, foreign direct investment has grown by 40% compared to the same period in 2024, with more than $1.5 billion in new capital coming from China, making China the second-largest source of foreign direct investment after Singapore.
According to a previous report by The New York Times, Vietnamese officials are eager to reach an agreement before the 90-day suspension period of "reciprocal tariffs" ends in early July. However, a trade agreement between the US and Vietnam remains distant, with Trump's targeting of China being one of the obstacles.
The report stated that in recent years, many Chinese enterprises have extended production lines to Vietnam. These are legitimate flows in the supply chain, but the Trump administration tried to redefine them as "illegal transshipment," pressuring Vietnam to crack down hard and sever ties with China’s supply chain. Analysts pointed out that this puts heavy pressure on countries dependent on China for production and exports. For Asian countries, cutting ties with China’s supply chain would take decades and come at a great cost.
Deborah Elms, head of trade policy at Hinrich Foundation, pointed out: "The US seems to assume that all products from China are default transshipments and thus intends to suppress every product from China. Governments in Asia are being asked by the US to redefine supply chains, but this could take decades to complete. And what benefits there are from this remains unknown."
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