The July 24 tariff changes reshaped the knitwear sourcing map. US imports are rebounding. Chinese export indices are up. And the cost picture — yarn, dye, duty — moved in different directions underneath all of it. Here’s the state of play for a brand planning sweater orders, and what to do with it.
1. The tariff map changed on July 24
On July 24, 2026, new US tariff rules took effect for Vietnam, Cambodia, Indonesia, Bangladesh, Pakistan, and India. These are the countries that took in most of the sweater and knitwear orders that left China over the past few years. The rules aren’t uniform — countries landed in different tariff tiers — so the cost gap between sourcing destinations just widened.
The US import data gives the context. In the first five months of 2026, US textile and apparel imports were down 8.92% year over year, to $39.13 billion. The first quarter fell 11.6%. May turned positive — up 2.8% — the first rebound after four straight months of decline. Brands were mostly clearing inventory, not buying.
China and India together lost about $4.5 billion of US import share. That’s more than the total US market decline. The share went to ASEAN, which rose to 20.83% of US imports. But those ASEAN orders now carry the new tariff cost.
For a brand that moved sweater production to Vietnam or Bangladesh in 2023–2025, the relocation discount is shrinking. The landed-cost math changed on July 24. That’s why “knitwear supplier china” and “custom knitwear manufacturer” are still active search terms — buyers are re-running the comparison, not just re-running old orders.
2. Where the orders are actually moving
The July export data from Keqiao, the textile trading hub in Shaoxing, shows what’s happening in real orders. The export prosperity index hit 1959.30 in July — up 60.2% month over month, up 70.7% year over year. The knit and crochet goods category was the strongest mover, up 79.56% month over month.
The growth isn’t coming from one market. Bangladesh, Vietnam, and Turkey are buying steadily. Overseas warehouses in Dhaka and Lagos are adding order volume. Central and Eastern Europe and Central Asia are growing. And Africa and Latin America are placing more small-batch, multi-style orders.
That last pattern matters for knitwear. Small batches, many styles — that’s not a fit for a factory built around 5,000-piece runs of one style. It’s a fit for low-MOQ production: a factory that can run 100 pieces per style and switch quickly between styles. That’s the order type growing right now.
3. Costs you’ll see in quotes — yarn and dye
Cotton yarn is in an off-season dip. Zheng cotton futures are weak, and the “golden September-October” order wave hasn’t landed yet. Mills are running at roughly 90% utilization, but low and mid-count yarns are being discounted to move inventory.
The exception is high-count yarn. 60S and above — combed and semi-combed — has held its price. If your sweater spec uses high-count cotton or merino, expect the yarn line of the quote to stay firm.
Dye is the bigger story. Dye prices are up over 65% since the start of 2026, and dye houses have started passing it on. In Shaoxing, large dye factories raised knit dyeing fees by 0.5 yuan per kilogram. That hits sweater production directly — garment-dyed styles, or styles that need dyed yarn, carry more of this cost than yarn-dyed styles where the yarn was dyed before the spike.
What this means for a quote: yarn is the biggest cost line, high-count yarn won’t drop, and dyeing method now moves the number. Ask for the yarn-dyed vs. garment-dyed split before you compare quotes.
4. What this means for brands and designers
- Lock yarn specs early. High-count yarn is the stable part of the cost picture. If your FW27 line uses 2/48Nm or 2/60Nm merino or combed cotton, spec it now — the price won’t soften in the off-season, and locking capacity early protects lead time.
- Ask about dyeing method, not just price. Dye costs are up 65% and dye fees are rising. Yarn-dyed vs. garment-dyed changes the quote more than it did last year. A factory that can quote both — and tell you which is cheaper for your color count — is worth more than a flat per-piece price.
- Plan for smaller, more frequent orders. The growth is in small-batch, multi-style buying from Africa, Latin America, and the overseas-warehouse channel. A low-MOQ factory fits that pattern. Test a style small, scale what sells — section 5 covers what to check in a factory like that.
- Compare landed cost, not price per piece. New tariffs on Vietnam, Bangladesh, Pakistan, and India change the total. A $2 higher per-piece price from a factory outside the new tariff tiers can still be the cheaper order by the time it clears customs. Run the duty math before you move a program.
5. Where Lewen Garment fits
Lewen Garment is a knitwear manufacturer in Dongguan, Guangdong — still the core of China’s sweater production cluster. It has run knitwear since 2002 and works from 100 pieces per style. That MOQ is the relevant number here, because it matches the order pattern that’s growing.
- Small batches, many styles. The July export data shows the growth is in small-batch, multi-style orders from Africa, Latin America, and the overseas-warehouse channel. A factory built around 5,000-piece runs can’t take that work profitably. Lewen runs 100 pieces per style and switches styles without losing production time.
- Yarn to finished sweater, one supplier. Lewen handles yarn selection, knitting, and finishing in-house. Bring a sketch or a yarn spec and they’ll tell you what will and won’t work before you pay for sampling. Fewer sampling rounds means shorter lead time.
- Fine-gauge and high-count experience. 60S+ and fine merino counts are holding their price this season. Lewen has made fine-gauge, high-count styles across men’s knitwear, so quotes on those specs come from real production runs, not from a spreadsheet.
- Both dyeing methods quoted. With dye costs up 65%, yarn-dyed vs garment-dyed is a real cost line. Lewen quotes both and will say which is cheaper for your color count.
If you’re re-running the sourcing comparison after July’s tariff changes, a factory with a low MOQ and one-stop production is worth a conversation — start with Lewen Garment.
The short version: sourcing is re-opening. The map changed in July, orders are moving in smaller pieces, and the cost lines — yarn, dye, duty — each moved in a different direction. Brands that re-quote with the new numbers in hand — and talk to a factory that fits the new order pattern — are the ones that’ll hold margin into 2027.
FAQ
Will the new US tariffs raise prices on sweaters from Vietnam and Bangladesh?
They raise the landed cost. The July 24 rules put Vietnam, Cambodia, Indonesia, Bangladesh, Pakistan, and India into different tariff tiers, and the cost gap between those countries has widened. Brands are re-comparing sourcing options; per-piece price no longer tells the whole story.
Is China still practical for custom knitwear orders?
Yes, for the right order type. Chinese factories still supply a large share of the yarn and fabric that Southeast Asian garment factories use, and China-based low-MOQ factories handle the small-batch, multi-style orders that are growing fastest. High-count yarn pricing has also stayed stable.
Why would sweater quotes rise when cotton prices are weak?
Because yarn isn’t the only cost. Dye prices are up over 65% since the start of 2026, and dyeing fees have risen in major hubs like Shaoxing. Low and mid-count yarns are being discounted, but high-count yarns have held firm. The dye line is what’s moving quotes.
How early should a brand place FW27 sweater orders?
Earlier than last year. The off-season is the window when dyeing capacity and high-count yarn are available at stable prices. Ordering before the “golden September-October” rush avoids the capacity squeeze and locks in current yarn pricing.
What does Lewen Garment offer for low-MOQ knitwear?
Lewen Garment is a knitwear manufacturer in Dongguan, China, running since 2002 with a 100-piece MOQ per style. It handles yarn selection, knitting, and finishing in-house, quotes yarn-dyed and garment-dyed options, and has production experience in fine-gauge, high-count men’s knitwear.