Technical textiles trade in US: Mexico leads while China struggles

05 Mar '25

3 min read

Technical textiles trade in US: Mexico leads while China struggles

Pic: Adobe Stock

Insights

US remains a key destination for technical textile exports, with Mexico leading at $357.15 million due to zero tariffs under USMCA and geographical proximity.
China follows with $71.12 million but faces rising tariffs and weakening competitiveness.
Germany, Canada, and Hungary hold notable shares, with Hungary having the highest RCA (8.86).

The US remains a key destination for global exports of technical textiles (HS-591190), with several countries competing for market share. Mexico leads with a dominant export value of $357.15 million, benefitting from zero tariffs under United States–Mexico–Canada Agreement (USMCA) and geographical proximity to the US. China follows with $71.12 million in exports, though its low Revealed Comparative Advantage (RCA) (0.80) and rising tariff barriers threaten to drain its competitiveness.

This analysis delves into the competitive landscape, highlighting how tariff structures, unit value realisation (UVR), and logistics performance impact trade dynamics in technical textiles.

Table1: Key observations on technical textiles (HS-591190) exports to the US in 2024

Source: TradeMap and F2F Analysis

Trade review of top five trading partners to US

Mexico: The market leader

Mexico dominates US imports of technical textiles (HS-591190), with exports worth $357.15 million in 2024. Its competitive edge is reinforced by a zero-tariff rate under the United States-Mexico-Canada Agreement (USMCA), reducing costs and enhancing price competitiveness. With an RCA of 3.67, Mexico exhibits strong specialisation in this sector. Additionally, geographical proximity and low transshipment costs further solidify its position.

Hungary: High specialisation, limited market share

Despite ranking fifth in export volume ($21.7 million), Hungary boasts the highest RCA (8.86), signalling significant specialisation in technical textiles. However, its exports are subject to a 3.8 per cent MFN tariff, unlike Mexico and Canada, which benefit from zero-duty access.

Germany and Canada: Stable players with trade advantages

Germany (Logistic Performance Index (LPI) 4.1) and Canada (LPI 4.0) hold notable market shares, but their lower RCA values suggest reduced competitiveness compared to other exporters. Canada benefits from zero tariffs under the USMCA and its proximity to the US, facilitating trade. However, Germany faces a 3.8 per cent MFN tariff, increasing its export costs. They benefit from strong transport infrastructure, aiding trade flow.

China: High trade volume, declining competitiveness

China is the second-largest supplier to the US, yet its RCA of 0.80 suggests weakening competitiveness. The 3.8 per cent MFN tariff already impacts cost-effectiveness, and an additional 10 per cent tariff hike will further erode China’s price advantage, making its exports less competitive in the US market.

Competitive landscape and outlook

While Germany and Hungary excel in logistics efficiency, Mexico and Canada’s geographical proximity gives them a cost advantage. However, potential policy shifts under a new US administration could alter this balance, especially if tariff exemptions for USMCA members are revoked.

Fibre2Fashion News Desk (NS)