The global fashion landscape underwent a seismic structural reshuffle in late 2025, according to the latest data from the Office of Textiles and Apparel (OTEXA). In a stark divergence of fortunes, the United States apparel import market is witnessing a decisive pivot: while traditional South Asian manufacturing giants are grappling with steep declines, Vietnam has emerged as the undisputed winner in the race for "China+1" supremacy.
The most dramatic downturn was felt in India, where textile and apparel exports to the US plummeted by 31.4 percent year-over-year in November 2025, falling to approximately $0.54 billion. This sharp contraction is largely fueled by a punishing 50 percent cumulative tariff wall on Indian goods. This trade barrier has rendered essential items, such as cotton knits, 35 percent more expensive than competing products, effectively pricing Indian manufacturers out of many high-volume retail contracts.
The volatility is not isolated to India. Bangladesh also witnessed a 14.5 percent decline in November, signaling a broader retreat from traditional South Asian hubs as global buyers prioritize cost-predictability and stable trade access over historical partnerships. As brands move to de-risk their supply chains against geopolitical shocks, the regional instability has forced a migration toward more resilient markets.
In contrast, Vietnam has solidified its position as the primary beneficiary of this trade diversification. While its neighbors struggled, Vietnam’s apparel shipments to the US increased by 12.2 percent in November 2025. The country’s total textile exports for the year are projected to hit a staggering $46 billion. This growth is anchored by a strategic 52 percent localization rate in raw materials and the sophisticated utilization of its vast Free Trade Agreement (FTA) network, which offers a level of price stability that its competitors currently lack.
"The shift we are seeing is not just seasonal; it is a strategic migration toward vendors who can absorb geopolitical shocks," noted an analyst from the Confederation of Indian Textile Industry (CITI). This sentiment underscores a new era in global sourcing where consistency and policy-protected trade routes are the ultimate currency.
As the industry looks toward 2026, the focus is expected to shift deeper into technical textiles and sustainable fabrications to offset rising labor costs. However, for the immediate future, Vietnam’s consistent double-digit growth throughout 2025 signals a permanent change in the $100 billion US fashion market, marking a decisive move toward Southeast Asian sourcing for the world’s biggest retail players.