Trade Winds Shift: What the U.S.–China Tariff Truce Means for Backpack & Outerwear Brands

By Kowide Outdoor — Bespoke Backpack & Outerwear Manufacturing, Vietnam

 A New Trade Chapter: The Trump–Xi Meeting

At the end of October 2025, U.S. President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, marking a significant — if temporary — turning point in global trade tensions.

The meeting produced a “limited truce” that cooled the latest round of tariff escalations between the United States and China. The agreement reduced or postponed specific tariffs, suspended some of China’s export controls on rare-earth minerals for 1 year, and reopened limited agricultural trade channels.

But make no mistake: this is not a full trade resolution. Most tariffs remain in place, and the U.S.–China economic rivalry continues to shape global supply chains — especially in the outdoor gear and apparel industries.

From The Public Fact Sheet And Media Reporting:

• The U.S. and China announced a trade-and-economic deal.

• China committed to halting the export of precursors used to make fentanyl into the U.S.

• China will suspend the new export controls on rare earths and related minerals (announced October 9) for one year until ~Nov 10, 2026.

• China will issue general licenses for exports of rare earths, gallium, germanium, antimony, and graphite to U.S. end-users (effectively removing/loosening controls).

• China will open its market more to U.S. agricultural goods (soybeans, etc).

• For the U.S. side:

• The U.S. will reduce a “fentanyl” tariff on Chinese goods from 20 % → 10 % (on certain goods) starting Nov 10, 2025, in effect until Nov 10, 2026.

• The U.S. will suspend the planned escalation of tariffs (including the 100% tariff threat) for the time being; they will at least maintain current levels rather than immediately raise.

• The U.S. “reciprocal” tariffs and other broader tariffs are still in place, though some rates are adjusted.

• Both sides:

• Agreed to de-escalate a bit, especially on rare earths/critical minerals and agricultural market access.

• But: the deal is drafted as limited in scope and temporary—many basic tariffs remain in place, strategic rivalry remains.

 What Has Changed Since The Summit

• As of November 10, 2025:

• The U.S. implemented the 10% tariff reduction (for the fentanyl-related tariff) effective Nov 10, 2025, and this reduction will last until Nov 10, 2026.

• China suspended the retaliatory tariffs and certain export controls (rare earths) for a one-year period.

• However, many U.S. tariffs remain in place (baseline, reciprocal, sector-specific). The U.S. still retains the option to raise tariffs if China does not fulfill its commitments; the deal is not a full normalization. Analysts caution this is a “truce” rather than a full peace.

Businesses and analysts are watching to see whether China honors its commitments (especially on fentanyl precursors, ag purchases, and export control relaxations) and whether the U.S. follows through on tariff restraint. Risk remains as the deal includes deadlines/expires (Nov 10, 2026, for certain items) and either side could ratchet up tariffs or controls again if the other side defaults or geopolitical tensions rise.

The New Status of Tariffs for Backpacks and Outerwear

Importing to the USA from China: As already indicated above, there has finally been some movement on the tariff dispute front between the US and China. This is the latest status, as best as we are able to identify at the moment:

• The base U.S. duty rate for a product classified under HTSUS subheading 4202.92.3120 (backpacks with outer surface of textile materials of man-made fibers) is 17.6 % ad valorem.

• In addition, products of China (originating in China) may be subject to additional duties under Section 301 of the Trade Act of 1974/other China-specific measures. For example, one ruling states that a backpack from China, classified under 4202.92.3120, is subject to an additional 25% duty due to these China-specific duties. (Unless you’ve confirmed an applicable exclusion for your exact item (dimensions/materials/origin) that remains in force.)

• There is also a “baseline” and country-specific tariff scheme introduced in 2025: the U.S. has a 10 % baseline “reciprocal” tariff on many imports, and for China, effective rates have been around 34%. However, the additional 24% have been deferred to November 10, 2026, as per the latest agreement from the meeting between Presidents Trump and Xi.  The USA announced that the “reciprocal tariff” had been maintained at 10 % instead of being raised.

• Under the International Emergency Economic Powers Act (IEEPA), the U.S. government (under Donald Trump) established a special additional tariff on certain goods from the People’s Republic of China aimed at pressuring China to curb the flow of fentanyl and precursor chemicals. That tariff had been set at 20 % ad valorem for relevant goods from China. On November 10, 2025, the tariff rate on those designated goods from China was reduced from 20 % down to 10 %.

So, combining these: for a backpack from China under HTSUS 4202.92.3120, the practical duties could be ~17.6% base + ~45% China-specific = ~62.6%. (Please note: Some exclusions have applied for specific items under the China Section 301 list (i.e., certain travel goods/backpacks were granted duty exclusions in earlier rounds), but many of those have expired or were limited.)

Importing to the USA from Vietnam: As opposed to the high tariffs Chinese-manufactured goods are subject to, Vietnamese-manufactured goods receive much more favorable terms:

• For Vietnam, U.S. importers are currently facing a general 20% tariff (on Vietnamese goods) with a steeper 40% tariff if imports are deemed trans-shipped via Vietnam from China.

Importing to Europe: In the last few articles and updates, we did not really take a look at the tariff situation regarding Europe, so here is a quick breakdown:

• For Europe (the European Union), backpacks imported from China face duty rates in the low single-digit percentages under HS 4202 (for instance, 2.7% for textile-surface backpacks, or ~9.7% for plastic-film versions) when no other trade remedy is applied.

• Meanwhile, goods from Vietnam benefit from the EU–Vietnam Free Trade Agreement (EVFTA), which allows eligible products to enter duty-free, provided rules of origin are satisfied.

 Why This Matters to Our Industry

The backpack and outerwear industry has been on the front lines of the tariff battle. Technical products depend on complex global supply chains — from waterproof fabrics and high-strength zippers to molded components often sourced from Asia.

The Trump–Xi truce gives short-term relief: the one-year pause on new export controls means smoother access to essential materials, and a reduced risk of sudden tariff spikes. However, many duties on finished goods remain high, forcing brands to rethink their sourcing strategies.

This moment of relative calm is a strategic window for brands to realign production and logistics — not a signal to return to business as usual in China.

Vietnam: The Smart Alternative

Vietnam has solidified its position as the top alternative to China for outdoor and technical apparel manufacturing. The combination of skilled labor, advanced textile supply chains near Ho Chi Minh City, and multiple favorable trade agreements makes Vietnam a long-term, stable partner for global brands.

At Kowide Outdoor, our factory near Ho Chi Minh City specializes in:

• Bespoke backpack and technical outerwear manufacturing

• Premium materials sourcing (Nylon 66, Cordura®, waterproof membranes)

• Low MOQ, high-flexibility production for brands seeking diversification from China

• Transparent pricing and full compliance with U.S. and EU trade requirements

With the current tariff gap of 20–40 percentage points between Chinese and Vietnamese production, brands shifting even part of their manufacturing to Vietnam can realize significant cost savings and lower trade risk — while maintaining quality and supply reliability.

Looking Ahead

The U.S.–China deal may bring temporary stability, but it doesn’t erase the underlying uncertainty. Analysts widely expect continued scrutiny, renewed tariff rounds, or even new restrictions on certain high-tech or textile categories in the future.

Forward-thinking brands are using this “pause” to build resilient supply chains — balancing cost, compliance, and flexibility.

At Kowide Outdoor, we help our partners future-proof their production by offering design collaboration, sourcing expertise, and end-to-end support from sample to shipment — all within Vietnam’s favorable trade environment.

In Summary

In short, the U.S. and China have reached a limited truce on some trade and export-control issues following the Trump–Xi summit. Some tariffs have been eased or delayed, some export controls have been relaxed, but many of the tariff and strategic-competition layers remain in place. The deal buys time and reduces the odds of immediate escalation—but it is not a full resolution.

✅ Tariffs on Chinese-made backpacks entering the U.S. exceed 40%.

✅ Vietnam-made products remain far more cost-competitive.

✅ The U.S.–China “truce” offers a window — not a full solution.

✅ Diversification is now a strategic necessity, not just a backup plan.

 The Kowide Outdoors Advantage for You

At Kowide Outdoors, we have you fully covered, and we can provide you with the flexibility to pick between our production facilities in Vietnam and China. Providing you with the ultimate flexibility without needing to change manufacturers. Rather than staying just in Vietnam, no problem, our China factory will not be involved. Want to distribute your supply chain between Vietnam and China? We got you covered. Want to keep manufacturing in China but have the option to transfer it to Vietnam? We can help with that, without you needing to go through the lengthy process of finding a new manufacturer.

Quick Glossary: Tariff & Trade Terms for Apparel Importers

Before we dive in, here are some key terms every garment buyer and importer should be familiar with:

• HS Code (Harmonised System Code): A universal product classification system. Apparel often falls under Chapters 61 (knitwear) and 62 (woven).

• MFN (Most Favoured Nation): Standard tariff rates granted by WTO member countries.
  These typically range from 8–20% for garments, depending on the item and material.

• FTA (Free Trade Agreement): Deals that eliminate or reduce import duties between countries.

• Rules of Origin: Criteria that determine whether a garment qualifies for FTA benefits.
  They define how much of the product’s value must originate from within the FTA member countries. For example, under EVFTA (Europe – Vietnam FTA), the fabric must be woven in Vietnam or another FTA partner country to be qualified.

• Anti-dumping duty: Additional tariffs imposed to counter unfairly priced imports. 

• Transshipment: The rerouting of goods through another country with minimal processing to conceal their origin and avoid higher tariffs.

Kowide Outdoor

KOWIDE OUTDOORS – Who We Are

We are a Bespoke Backpack and Outdoor Apparel Manufacturer from Taiwan

A leading OEM manufacturer with over 50 years of experience supplying products to world-renowned brands across Europe, Asia, Australia, and North America. Our world-class production facility in Vietnam, situated within easy reach of Ho Chi Minh City, is ideally suited to cover all manufacturing needs, from R&D, sourcing, and prototyping to bulk production.

Through technical expertise, ethical management, and rigorous quality control, Kowide Outdoors consistently strives to exceed client expectations, taking pride in helping clients achieve success by delivering the highest level of quality and unparalleled customer service.