The USA, one of the world's largest markets for textile products, has protected its textile and apparel industries from foreign competition since the beginning of this century. The overall effect of such protectionism has created a hostile environment for major textile/apparel exporting countries, particularly those from Asia. Reviews the impact of US protectionism and examines the strategies undertaken by the Asian countries in response to such protectionism. In particular, it is observed that these countries have begun to shift from traditional low-cost strategies based on cheap labour to more differentiation strategies.