China Apparel Exports Jump 24% in September as Tariff Truce Bites

Chinese apparel exports rose 24 percent year on year to $15.4 billion in September, the category's strongest month of 2026, according to data from China's General Administration of Customs. Footwear shipments grew an estimated 20.2 percent to $3.5 billion, also a 2026 high, while textile exports climbed 19 percent to $14.2 billion.

The turnaround marks a sharp reversal for two categories that had dragged on China's export base. Apparel shipments fell nearly 30 percent year on year in March; footwear dropped close to 40 percent. Through August, apparel exports had grown just 2.5 percent for the year and footwear had contracted 4.7 percent.

The recovery has direct implications for sourcing desks weighing China against Vietnam, Bangladesh and other alternatives on price and capacity.

How much did US-bound shipments grow?

Total Chinese exports to the United States rose 39.6 percent to $47.9 billion in September, the sixth consecutive monthly increase, after 34.4 percent growth in August. The figure benefits from a low base: shipments to the U.S. plunged 27 percent in September 2025 amid heavy trade tensions.

Late last month, Washington and Beijing extended the tariff truce first brokered last fall. It now runs through January 2027 and includes $30 billion in tariff cuts on both sides.

"Over 90 percent of these products are exempt from all previously imposed tariffs and enjoying most-favored-nation tariff treatment, reducing rates from over 30 percent to around 2 to 3 percent, a significant decrease," said Minsheng Bank chief economist Wen Bin in a Thursday research note. "This primarily benefits labor-intensive products such as home furnishings, appliances, children's products, entertainment goods and festive supplies."

For softgoods buyers, that rate cut lands directly on labour-intensive categories — the same segments that had been shifting out of China.

What drove the apparel and footwear rebound?

Volume, not just pricing. Wen noted that September shoe prices rose 6.6 percent while volumes increased 12.8 percent, "showing a simultaneous increase in both volume and price, reversing the previous trend of rising prices but falling volume."

Overall exports reached $447.2 billion for the month, up 36.3 percent. The trade surplus hit $133.5 billion, lifting the year-to-date surplus to $938.1 billion and keeping Beijing on pace to exceed last year's record $1.2 trillion. Semiconductors and computing contributed more than 13 percentage points of total export growth, according to Nguyen Hoang Nam, a China-focused economist at Capital Economics.

How broad was the demand across markets?

The rebound extended well beyond the U.S.:

• ASEAN, China's largest export market, took $81.7 billion, up 52.3 percent
• Vietnam absorbed $25.6 billion, up 53.3 percent — the highest monthly total for any ASEAN country
• Malaysia rose 81.4 percent to $14.6 billion; Thailand grew 64.8 percent
• The EU imported $60.2 billion, up 25.3 percent, led by Germany at $13.1 billion
• South Korea jumped 68.2 percent to $20.6 billion, its fastest pace since 2021
• India took $17.4 billion, up 47.8 percent; Japan rose 15.8 percent to $15.6 billion

Apparel and footwear posted gains across all major markets, not just the U.S.

What does the macro picture mean for sourcing?

China's third-quarter GDP grew 4.5 percent, the National Bureau of Statistics reported Monday, beating the 4.4 percent consensus and up from 4.3 percent in the second quarter. Retail sales rose just 1.1 percent in September, and manufacturing PMI edged up 0.3 points to 50.1, back in slight expansion.

"The key macroeconomic message is that China's economy is still supply- and production-side driven," Yuhan Zhang, principal economist at The Conference Board's China Center, told Reuters. "This supports near-term growth and industrial upgrading, while continued efforts to strengthen household consumption, services demand and consumer confidence would make the recovery more balanced and sustainable."

The tariff truce runs only through January 2027. Buyers who locked in China exits earlier in 2026 now face a decision: requalify Chinese capacity at 2-3 percent tariff rates for labour-intensive goods, or hold diversified sourcing through a window that may close.