Based on a fresh report from the South China Morning Post published on August 28, 2025, over 200 Chinese-owned print-on-demand factories have relocated to the United States within the past two years. These print-on-demand facilities, known for producing fast-fashion items like T-shirts, hats, and other custom apparel, are vital cogs in the speedy e-commerce supply chain.
The move is primarily driven by the growing U.S. tariffs on Chinese imports, which have made it increasingly expensive for Chinese companies to ship printed goods to the U.S. With tariffs soaring as high as 145%, many manufacturers are seeking to avoid hefty costs and shipping delays by establishing operations closer to their largest market. For many of these factories, the U.S. represents up to 95% of their business, making this relocation not just a strategic decision but a necessity to remain competitive.
Setting up operations in the U.S. comes with its own challenges. Companies like Kent Liu, a prominent entrepreneur in the industry, face complex logistics, lengthy visa processes, and costly warehouse leases. However, the benefits of cutting out tariffs and offering faster delivery outweigh these hurdles. By producing locally, these companies can better control product quality and speed up the customer experience—key factors in an industry that thrives on fast turnover.
The trend also aligns with broader shifts in global supply chains, where Chinese exporters are increasingly looking to diversify production across Southeast Asia and beyond. For the U.S. e-commerce sector, however, this relocation is a win: the print-on-demand industry is now more nimble and adaptable, reducing dependency on long, costly overseas supply chains. As these Chinese-owned factories continue to move stateside, their impact on the U.S. manufacturing landscape remains to be seen. But one thing is clear: tariffs have reshaped global business dynamics, pushing manufacturers to rethink their production and distribution strategies.
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