The intensifying trade tensions between the United States and China are having a profound impact on global TEXTILE supply and accordingly directly impact on bag and case industry, which is a key product within the textile category, are directly in the crossfire. With tariffs on some Chinese textile products, including backpacks, now as high as 104%, businesses on both sides are being forced to adapt quickly.

The reason why US impact high tariff on China main as below.

1. Reduce dependency on Chinese manufacturing
The U.S. aims to encourage domestic production and reduce its reliance on Chinese-made goods, and reduce the trade deficit between US and China and get more money to ease the national debt.

2.Protect U.S. industries
High tariffs act as a shield for American manufacturers who struggle to compete with China’s large-scale, low-cost production and have production go back to US.

3.Strategic leverage
Tariffs serve as pressure on China to reform market practices, including intellectual property protection and state subsidies.

Impact on China Backpack Exporters

1.Decline in U.S. orders
Many U.S. buyers are cutting or freezing orders from Chinese suppliers due to cost spikes.

2.Margin pressure
Chinese factories are under growing pressure to absorb cost increases or risk losing clients.

3.Diversified production
Manufacturers are moving part of their operations to Southeast Asia (Vietnam, Indonesia, Cambodia) to avoid U.S. tariffs.

How China Might Respond

1.Market diversification
China is looking to grow its backpack exports to non-U.S. markets.

2.Industrial upgrading
Factories are investing in automation, digital sampling, and smarter material sourcing to increase efficiency.

3.Southeast Asia expansion
More Chinese suppliers are setting up production bases or partnering with factories in Vietnam and other low-tariff countries.