Can China retain its lead in US nonwoven fabric trade amid tariffs?

Table 1: Top exporting countries and market performance - HS-560392 - nonwoven fabrics (>25 G/M²) in CY 2024

Source: TradeMap and F2F Analysis *Effective from 2024

Note: RCA - Revealed Comparative Advantage, UVR - Unit Value Realisation, LPI - Logistic Performance Index

Figure 1: Top exporting countries and market performance - HS-560392 - nonwoven fabrics (>25 G/M²) in CY 2024

Trade review and key observations

All the top five exporters have competitive advantages and efficient logistics.

China remains the largest exporter of nonwoven fabrics under HS Code 560392, with total exports to the US valued at $135.474 million. However, its export price is relatively low at $2.92/kg, indicating a focus on high-volume, cost-effective production.

Tariff Impact: The first tariff imposition on February 4, 2025, raised the tariff rate to 10 per cent. This increase is expected to drive up the unit value of exports (UVR) as production and export costs rise. Consequently, the UVR is projected to reach approximately $3.20/kg, highlighting the growing challenges posed by higher tariffs. This increase suggests that nonwoven fabrics from China may become less competitive among price-sensitive buyers.

Figure 2

Source: F2F Analysis

With the second tariff imposition, effective March 4, 2025, the tariff rate increased further to 20 per cent. This substantial rise is expected to push the UVR to approximately $3.50/kg or higher. The added tariff burden will continue to drive up costs, further reducing the cost-effectiveness of these products. As a result, competitors from countries with lower tariff rates may gain a stronger competitive edge, potentially shifting demand away from Chinese exports in price-sensitive markets.

Taiwan exports a smaller volume of nonwoven fabrics to the US compared to Mainland China but commands a higher price of $3.81/kg, suggesting a focus on premium or specialised products.

Thailand has the highest export price among the top three countries at $6.01/kg, indicating a strategy centred on high-quality products or a competitive positioning tailored to the US market.

Turkiye commands a price of $3.28/kg, reflecting a premium market positioning, likely driven by advanced manufacturing capabilities or niche applications.

Germany, despite having the smallest export volume among the top five, offers a highly competitive price of $6.39/kg. This could be attributed to government subsidies, cost efficiencies, or other economic factors. Additionally, Germany’s higher UVR may reflect a strong emphasis on quality, allowing its products to fetch higher prices in the US market.

Market insights and outlook

The nonwoven fabric trade in the US is currently dominated by China in terms of volume. However, the recent additional tariff on Chinese exports is expected to erode its cost advantage, creating opportunities for competitors. Countries like Taiwan, Thailand, and Turkiye compete on both pricing and specialisation, but China’s continued expertise in the sector, combined with its above-average logistics performance (LPI: 3.7), may help it maintain its dominant position, particularly in the US market.

High export prices in Turkiye and Thailand suggest a focus on market differentiation strategies, targeting premium segments. In contrast, Germany’s exceptionally high pricing could indicate a cost-leadership approach or a concentration on higher-end product offerings.

To stay competitive in nonwoven fabric exports, market players must carefully assess both volume and pricing strategies to identify and leverage their key advantages.

Fibre2Fashion News Desk (NS)