Impact of COVID-19 decreases the USA apparel import by 10.72% in January 2020
In January 2020, the US imported 2,312,50 million SMEs of apparel worth 6,757,89 million US dollars, compared with 2,603,78 million SMEs of apparel worth 7,568,93 million US dollars in January 2019.
According to OTEXA, the United States reported a significant decrease in both the prices (11.19 per cent) and volumes (10.72 per cent) of its global imports of apparel. As China was Coronavirus ' epicenter, the country declared lockdown in many provinces from January's third week to late February. This lockout has forced producers to keep their factories closed.
India again seemed to have missed the bus because, according to OTEXA numbers, it could not seize the opportunity of shipping equipment worth US$ 370.50 million to the US in January 2020.
Interestingly, even due to its January TET holidays, clothing shipments from Vietnam to the USA did not escalate too much. The country exported US$ 1.31 billion worth of apparel sales to the U.S. and noted value growth of 4.12 percent. This respectable growth combined with the downturn in China made Vietnam's export of apparel to the USA nearly equal to that of China's.
In the midst of this changing landscape, although temporary, Bangladesh was the one that took advantage of it and dramatically jumped in export value by 17 percent to reach the US$ 622.40 million mark. The country's growth is noteworthy as it concluded 2019 with its exports to the US stagnating.
Cambodia (up 20 per cent) and Myanmar (up 86.95 per cent) were Asia's biggest beneficiaries. Myanmar has nearly doubled its exports of apparel to the USA which is overwhelming for manufacturers in the region. It shipped clothing worth US$29.72 million to the US in January 2020 compared to clothing worth US$15.90 million in January 2019.
On the other hand, in January 2020, Cambodia increased its exports of apparel from US $231.32 million in January 2019 to US $277.40 million.
The apparel trade between countries is projected to not improve even in February as COVID-19 has severely affected the supply chain not only in China but also other major manufacturing hubs around the world. This will affect all goods produced, as well as services.