US–China trade truce resets outlook for fashion supply chains

A one-year trade deal struck in South Korea between Donald Trump and Xi Jinping changes US–China economic relations, easing immediate pressure on global manufacturing and logistics, reported the Financial Times. For fashion groups, the truce buys time rather than certainty.

According to multiple briefings around the summit, China will suspend newly expanded export controls on rare earths for a year, while Washington will pause the extension of certain technology-related export curbs and some new port fees on Chinese maritime and logistics sectors. Both sides framed the agreement as a step toward a fuller trade accord, with annual reviews envisaged, reported Reuters.

Rare earths matter beyond tech. Magnets made from rare earth elements sit in the motors that power warehouse robotics, automated sewing and cutting equipment, and last-mile delivery fleets. Pausing export curbs should stabilise component availability and pricing for machinery suppliers to apparel and footwear factories, as well as for automation in major distribution hubs through peak season.

Tariff signals are mixed but moving in a more positive direction. According to US officials, the latest talks point to a temporary easing of certain tariffs and a reduction in a fentanyl-related levy on Chinese goods, in exchange for closer cooperation on chemical exports and agricultural trade. While the immediate impact on fashion is limited, most apparel and footwear tariffs remain untouched, the move helps calm the uncertainty that has been clouding forward orders for Spring and Autumn 2026 collections.

Marketing and digital platforms

Beijing has also signalled a willingness to work with Washington on issues surrounding TikTok. For fashion brands increasingly reliant on influencer and creator marketing in the US, even a procedural thaw between the two countries reduces the risk of disruption to one of the sector’s most important digital platforms.

What to watch next for fashion and retail

Sourcing and production teams are expected to use the one-year window to revisit contracts, renegotiate shipping and component schedules, and build in more flexibility in case restrictions return.

Overall, the truce offers the fashion industry short-term breathing space. It eases some of the pressure on manufacturing, logistics, and automation costs through the upcoming holiday season and into early 2026. But analysts caution that it remains a temporary pause rather than a full reset, meaning brands should treat the next nine months as an opportunity to reinforce supply-chain resilience, not assume stability will last.