On March 11, 2026 local time, the Trump administration of the United States announced the launch of a new round of industrial overcapacity investigation based on Section 301, involving 16 trading partners such as China, the European Union, India, and Vietnam. This investigation focuses on issues such as trade surpluses and insufficient capacity utilization in the manufacturing sector, and may impose new tariffs on some economies before the summer. As an important sector of the manufacturing industry, the global textile and apparel industry is facing a complex situation of supply chain restructuring, rising costs, and increased export pressure, as its major export countries such as China, Vietnam, Cambodia, and Bangladesh are all on the investigation list. 

The core textile-exporting countries are under pressure, with export costs facing an increase. 

Among the economies included in this investigation, there are major global textile and garment exporters such as China, Vietnam, Thailand, Cambodia, and Bangladesh. These countries are also the main import sources of textile and apparel products for the United States. Vietnam and Cambodia, leveraging their cost advantages, have attracted international brands like Nike and Lululemon to locate over 35% of their related production capacity here. China, with a complete industrial chain from raw materials to finished clothing manufacturing, holds an important position in the US textile import landscape. Previously, the United States has imposed tariffs of approximately 42% on some Chinese clothing products. If the new round of tariff measures is implemented, the export costs of these countries to the US will further increase, squeezing the profit margins of enterprises and potentially leading to a decline in export orders. 

The textile industry in Southeast Asia is facing a direct impact, and the stability of its industrial chain is under threat. 

Compared to China, the textile-exporting countries in Southeast Asia such as Vietnam and Cambodia may have been more directly affected by this investigation. These countries have a higher dependence on US exports for their textile industries, and their industrial chains are relatively less well-developed. They mainly engage in garment processing and OEM production, with limited profit margins. Previously, the adjustment of US tariffs has already put pressure on the Southeast Asian textile industry, with reduced orders and capacity contraction. Data from the Vietnam Textile and Apparel Association shows that the changes in US tariffs have had a significant impact on the operation of the local industrial chain. If the new tariff measures are implemented, the price competitiveness of Southeast Asian textile enterprises in the US market may further weaken. Some small and medium-sized enterprises that rely heavily on exports to the US may face risks such as shutdowns and layoffs, affecting local employment and industrial development. 

The efficiency of global supply chain circulation may be affected, and uncertainty has increased. 

The initiation of this large-scale trade investigation has added new uncertainties to the global textile supply chain. The United States has limited domestic textile and clothing manufacturing capabilities, capable of meeting only 2.5% of domestic clothing demand and 1% of domestic footwear demand. It has a high reliance on imports. However, changes in tariff policies have made it difficult for American purchasers to formulate long-term and stable purchasing plans. The supply chain layout is facing a dilemma between seeking alternative suppliers and maintaining existing partnerships. Due to the investigation covering multiple Asian textile production countries, the low-cost production regions are generally under pressure. In the short term, neither exporters in the exporting countries nor importers in the importing countries can quickly achieve the goal of exploring new markets or adjusting supply chain channels. As a result, the efficiency of global textile trade may be affected. 

In the face of this situation, global textile enterprises need to closely monitor the progress of the investigation and the direction of tariff policies, adjust their supply chain layout and market strategies in a timely manner, and prepare corresponding plans to cope with the important variables in the global textile industry development in 2026. 

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