b'FEBRUARY 2026TOP EXPORTERS & IMPORTERS 17(WOEScontinued from(NEXTcontinued from(DECOUPLINGcontinuedwith the US.Nevertheless,despitethetariff page 6) page 6) from page 10) question that weighed on some endofthedeminimisrule].Ia wide range of factors, includ- c OntrASting tHeeu-i ndiA exhibitors, the overall mood was i MpActv ArieS byi nduStrywould share that we are lookingingtariffs,sourcingstrategies,AnduS-i ndiAA greeMentS one of optimism because of the OnemajorLSPkeepingaactively at our DC network, andconsumerdemand,andgeopo- Onaprimafaciecom- positive response from potential closeeyeontheimpactofthepart of our mitigation strategy isliticaldevelopments.Becauseparison,theEU-Indiaagree- buyers, he said. slide in the dollar and US tariffs isinventory placement and makingof that, its difficult to determinementisseenasawin-win French group Geodis, which hassure were most efficient as wefrom the data alone whether theaccord, with both sides gaining asignificantfootprintinNorthmoveforward,Lululemonscurrent pattern represents a sus- improved market access, though America. Freight volumes fromCFO, Meghan Frank, told ana- tained long-term shift or a cycleagreementonsomesegments, Europe to the US have declinedlysts during their second quarterthat could reverse, Wood warns. particularlyagriculturalprod-asaresultofthreeconverging2025 earnings call last August. Another question is whetheructs,couldleadtoprotestsby factors,commentedHenriLeOther strategies have includedUS policies are pushing China toaffectedsectorsonbothsides. Gouis,EVP,globalfreightfor- the use of foreign trade zones,tradewithothercountries.TheIndias access to the EU market warding, in a written response tobonded facilities, and nearshor- stats may support this. Wood sayswill be enhanced, even though it questions from AJOT. ingasaduty-deferralmethod,although there was a significantmakes limited concessions com-First,thedollarsdepre- accordingtoMatthewHertz,decline in total exports (by value)pared to those made by the EU. ciationagainsttheeurohasCEOandfounderofThirdfrom China to the US from 2024However, on the services sector, reducedpricecompetitivenessPerson,a3PLmatchmakerforto 2025, total China exports (bythe EU fares better than India, for European exporters. Second,e-commerce brands. Importersvalue) have grown over the lastalthough the concession allowed elevatedenergycostscontinueare looking for legitimate waysthree years, from $3.42T in 2023to Indian professionals to moveOlaf Schmidt, senior vice president toweighoncertainEuropeantodefertariffsuntilgoodsareto $3.77T in 2025. This growthto Europe is seen as a much-as- (textiles and textile technologies) of industries,particularlyener- shippedtothefinalcustomer,includesChinaexportstoViet- pired breakthrough.Messe Frankfurt GmbHgy-intensivesectorssuchasrather than trying to bypass themnam,Thailand,Malaysia,IndiaBycontrast,theUS-In-chemicals.Third,UStariffsentirely, said Hertz. and Germany. diaagreement,ifimplementedt extileM AcHinerye xpOrterShavemateriallyslowedexportWereseeingmanyofinitscurrentform,wouldbeA lSOH it byd ecliningO rderSactivity during the third quarterourtraditionalallieslookingmore advantageous for the USOtherbusinesssectorsthat of 2025 with volumes expectedtostrengthentieswithChina,than the EU-India agreement iscatertothetextiletradeand tohavenormalizedgraduallyGoldofNRFsuggests.Withfor the EU. If India has indeedindustry have also felt the impact toward the end of last year. the ongoing threats, and chang- agreedtomovetowardtheoftariffswhichhaveaffected, That said, the impact variesingtermsoftradeagreements,zero-tariffgoalpost,asTrumpfor instance, the business of tex-by industry and is closely tied tomany of our trading partners aresays, the 18% tariffs would be atile machinery exporters whose pricingpower.Airfreight,forlookingforalternatemarkets.gain for the US. productsareusedbytextile example, has proven more resil- Theyre looking to China, Indiamanufacturersinseveralcoun-ient (than ocean) as it primarilyandelsewhere.Ifwewanttotries.ElgarStraub,Munich-supports high-value goods suchremain the global leader, weve(HIGHLIGHTEDcontinuedbased managing director of the as pharmaceuticals, luxury prod- got to have better relationshipsfrom page 12) Association of German Machin-ucts, and aerospace componentswith our trading partners. 2025 was marked by heightenederyandEquipmentManufactur-sectorsthatarebetterposi- unpredictability, a complex land- ers,observedinaninterview tioned to absorb cost increases. c Alling At ruce ? scape of slower global economicatFrankfurtsHeimtextilshow He also noted that despiteTheUSstanceondecou- growth,andrisingunilateral- thattheassociationsmember the competitive advantage cre- plingmaybesoftening,astheism and protectionism. Chinascompaniessupplyallkinds atedbyaweakerUSdollar,Matthew Hertz, CEO,Third Person currentUSadministrationistextileandapparelindustryofmachineryandequipment, EuropeandemandforUSstarting to use the term de-risk- pressedforwardagainsttheincludingforproductionand exports has remained subdued.Additionally,asnotedbying instead. In addition, the USheadwinds, demonstrating resil- processing of textiles.Lowervolumeshaveconse- Huckeba,SKUrationalizationand China established a one-yearience and vitality, she said. quently put downward pressureis another consideration for UStrade truce late last year throughChinaisalsoturningits on freight rates. importers,astheytrimslow- November10,2026,includingattentiontoChinasdomestic er-moving SKUs and focus onreducedUStariffs,suspendedmarketwhichispromising, higher-velocity items that justifyChineseretaliatorytariffs,andSunadded,besideslookingat the cost and compliance burdenChinas commitment to purchaseopportunitiesinneighboring of bulk importation. US agricultural products. Maybecountries like India. these actions signal a change toAccordingtopreliminary M itigAtingH igHerc OStS the decoupling policy? datafromtheGeneral Admin-TodayimportersarefacedDavin Chor does not agree,istrationofCustomsofChina, withhighercosts.TomitigateI do not foresee any imminentthe countrys total 2025 textile the costs and maintain customerreversalforU.S.-Chinatradeandapparelexportsamounted loyalty,theyhaveinvestedindecoupling,certainlynotunderto$293.77billion,down2.4 technologytoolstoimprovethecurrentUSadministration.%year-on-year.Withinthis transparencyinshippingwin- Nor do I think it is likely that thistotal,textileexportsrose0.5Elgar Straub, managing director, dows,forcustomsprocessing,might rebound even after the cur- % to US $142.58 billion, whileAssociation of German Machinery to manage suppliers, to managerent US presidential term. This isapparel exports declined 5.0 %& Equipment Manufacturerscross-borderreturnshandlingsimply because the conversationto $151.18 billion.and more. regarding US economic relationsMeanwhile,accordingtoanCustomersinIndia,for Henri Le Gouis, Geodis We see more D2C and B2Bwith China is now heavily col- announcementonFeb.9,theinstance, have slowed down their importersinvestingintechnol- ored by concerns about economicTrump administration will reducemachineryimports.European M ArketO utlOOk ogyforcompliancepurposes,and geopolitical competition. tariffsonBangladeshgoods,Union(EU)hasenteredinto LeGouisunderlinedthatsaid Sharad. Importers are nowincluding textiles and apparel.an FTA with the MERCOSUR globalovercapacityinoceanhavingtomakesurethatdec- Bangladeshsinterimleaderstates, and this should help our freight continues to weigh on thelarationsareaccurate,thecor- (CONTRASTcontinued fromMuhammedYunussaidinaindustry.Exportmarketsand market with no expectation of arect country of origin is listed, apage 10) recentpostthatTrumpwillsupplychainsfaceunpredict-meaningful rebound in the neardetailed description of the productfrom India. The US-India jointreducetheoverallreciprocalability.I am happy that the EU term unless there is a significantand other requirements to ensurestatement on an interim frame- tariffsto19%onBangladeshhas ironed out an FTA with India geopolitical disruption affectingentranceintotheUSthatunderworkagreement,releasedonproducts, after already reducingwhich is very important for the major trade lanes. de minimis they did not have toFeb.6,doesnotprovideanythem from 27% to 20% last year.EU, Straub said, adding that the Turning to air freight, he saidworry about, said Sharad. specific details. The deal also includes a mecha- Germanmachineryexporters activity was stronger in the earlyBut despite the higher costs,The US made the main con- nism allowing full exemption tohad experienced a 14% decline partof2025asshippersfront- e-commercecontinuestogrow.cessiontoreducethetotal50%certain products such as certainin the first 11 months of 2025. loaded volumes, but year-on-yearShipping costs and landed coststariffto18%,besidespromisingtextile and apparel goods fromManyofourmembers,who momentum has slowed in recentarerisingforthosewhowereto remove a few other tariffs onceBangladesh using US-producedexport textile machinery to the months, he said. Some sectors aredependentontheexemption.the agreement is ready for signa- cotton and man-made fiber.US, face uncertainty, he said. moreaffectedthanothers,withHowever, we havent yet seen ature,includingongenericphar- OlafSchmidt,seniorvice nicheandtime-sensitiveflowsdipinoverallUSe-commercemaceuticals, gems and diamonds,president(textilesandtextile remaining relatively stable. spending.Theconsumerseemsaircraft parts, etc.India has not yettechnologies)ofMesseFrank- (RELATIONSHIPcontinued Lookingahead,globalresilient, even as importers grap- indicated the extent of tariff reduc- furtGmbH,whichorganizedon page 12)tradegrowthisexpectedtople with whether to absorb thesetion it would offer on US food andthe Heimtextil show, noted in anto a combined rate of approxi-moderatebutalsotobecomecosts or pass them on, said Hertz. agricultural products.interview that the show had high- mately 15%. China is a $4 billion more diversified in 2026. In theIndeed,accordingtotheIndiahasalsonotyetlighted all the issues currently ofcanola seed market for Canadian transatlanticmarket,ourfocusCensusBureauoftheDepart- reacted to Trumps assertion thatsignificance to the textile trade,producers, and this change rep-willremainonindustrieswithmentofCommerce,USretailIndia had agreed to buy $500 bil- including AI and micro-technol- resents a significant drop from strongpricingpowerandsus- e-commerce sales for the thirdlion worth of US goods over fiveogies.Tariffsalso,inevitably,currentcombinedtarifflevels tained end-customer demand. Inquarterof2025,adjustedforyears;consideringthatIndiascroppedupinconversationsof approximately 85%. Canada anenvironmentcharacterizedseasonalvariationbutnotforimports from the US amountedbetween buyers and sellers.expectsthatCanadiancanola byvolatility,agilityiscriti- price changes, were $310.3 bil- tosome$40billion,expectingTariffsare,ofcourse,ofmeal,lobsters,crabs,andpeas cal,adaptingquicklywillbelion, an increase of 1.9% fromIndiatopurchasegoodsworthconcern to international suppli- willnotbesubjecttorelevant essentialinhelpingcustomersthe second quarter of 2025 and$500 billion would be unrealis- ers but nobody can predict howanti-discriminationtariffsfrom managedisruptionandprotecta 5.1% increase from the thirdtic. India will face an unprece- they would evolve in the future.March 1, 2026, until at least the supply chain continuity. quarter of 2024. dentedbalance-of-tradedeficitIt is not easy to give an answer.end of this year.'