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China’s Garment Factories Face a Tipping Point After New Tariffs

Chinese garment factory owner Liu Miao's Amazon business has collapsed due to US tariffs and import taxes. The increased costs, coupled with tight profit margins, have made it impossible for him to maintain profitability. Previously earning $1 per garment, he now makes only 50 cents, forcing him to cease US sales. This situation reflects the wider impact on Guangzhou's garment industry, which relied heavily on low-cost exports to the US via online platforms like Amazon, Shein, and Temu.

Prepared by Christopher Adams and reviewed by editorial team.

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