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Tariffs Drive Surge in Chinese Print-On-Demand Factories in the U.S.

When Kent Liu moved his customized apparel business from China to the U.S. in 2023, it was a strategic response to escalating tariffs and geopolitical uncertainty. His bet paid off—Digiprint America now operates facilities in California and New Jersey, soon to be joined by a third in Atlanta, avoiding the latest import duties introduced under President Trump’s renewed trade war. The U.S. has eliminated the de minimis tax exemption, prompting Chinese manufacturers to adopt a new hybrid model: import blank goods, print domestically, and ship locally. “If I don’t go, I might fall behind the times,” Liu recalled thinking—and many followed. Over 200 Chinese printing firms have opened U.S. factories in the last two years, aiming to serve fast-fashion giants like Shein and Temu, along with smaller American clients. While fierce competition has driven profit margins down to as low as 50 cents per garment, faster payments and closer proximity to customers offer a cash flow advantage. “This cashflow gap allows small factories to catch their breath,” said Sofia Chen, a factory owner from Shenzhen. With the U.S. manufacturing index showing growth and demand for print-on-demand products rising—forecast to top $35 billion globally by 2033—Chinese print businesses see a long-term foothold in the American market.

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