The results of Sino-US tariff negotiations have been released. Domestic textile and fiber mills believe that the 30% tax rate is a "negotiable tariff". In a sense, it should also be a tax rate that customers, manufacturers, and suppliers can coordinate and bear. The pressure on the economy and prosperity can also be relieved a lot.
However, what the industry is more concerned about is that there is still a 90-day suspension period for the mutual reduction of tariffs between China and the United States. The negotiations during this period and the final tax rate after 90 days are the focus of the market.
Far East New pointed out that the proportion of exports from mainland China to the United States is very low. Currently, there are many export orders from Vietnam to the United States, and we are continuing to track the results of negotiations between Vietnam and the United States. However, the reciprocal tariffs between China and the United States should give the market a message that reciprocal tariffs will be relaxed in the future, which should be positive for the operations of domestic textile fiber mills.
Xin Fiber believes that the outcome of the Sino-US tariff negotiations, although there is a 90-day suspension period, has given the market a feeling that Trump's reciprocal tariffs are "negotiable, negotiable, and easing." For domestic industry players, there will be more optimistic expectations for operations in the second half of the year than before.
In addition, the tariff negotiations between China and the United States have moderated results, and the impact on the economy and prosperity will be mitigated, which will also reduce concerns that reciprocal tariffs may bring down the consumer market.
Juyang, a major garment manufacturer, pointed out that orders in hand are still being shipped normally. There is still a 90-day suspension period for the mutual reduction of tariffs between China and the United States. What the actual tax rate will be after 90 days is what customers, manufacturers and suppliers care about.
After the 90-day suspension of tariffs on various countries previously announced by Trump, urgent orders and transfer orders have been decided. This mutual reduction in tariffs between China and the United States will have no impact on urgent orders and transfer orders. What customers are most concerned about now is that after the 90-day suspension period of mutual reductions in tariffs between China and the United States, the final tax rate negotiated by the two parties is the main factor in determining long-term orders. Since the visibility of long-term orders takes more than 4 months from the beginning, order placement, and shipment, customers should still wait and see and are not in a hurry to place long-term orders. Instead, they will have to wait 90 days after the tax rate is determined before actually placing long-term orders.
