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Discover the top 5 countries to source cotton clothing, T-shirts, and knitwear after Trump-era tariffs. Compare tariffs & cost advantages.

🇺🇸 Tariff-Free Apparel Sourcing: Top 5 Countries to Manufacture Clothing After Trump’s Tariffs

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Published in: Clothing advise

The Trump administration’s tariff strategy shook the global apparel trade, with clothing manufacturing tariffs rising dramatically for many major exporters. For U.S. clothing importers & buyers, this led to a critical question:

“Where can we source high-quality apparel, T-shirts, and knitwear without being hit by high U.S. tariffs?”

Whether you’re importing blank tees, cotton joggers, or premium knitwear, this blog helps you discover the best low-duty and tariff-free countries for apparel sourcing in 2025. This guide also integrates essential information like Section 301 tariffs, GSP withdrawal, and Free Trade Agreements (FTA)—all of which influence your bottom line.

🥇 1. India – A Versatile, Cost-Efficient Sourcing Hub

Best for: Cotton T-shirts Manufacturing, knitted garments, printed tees, organic cotton lines
Tariff Status: No FTA with the U.S., but moderate duties and no Section 301 penalties


✅ Why Choose India?

  • Tirupur, known as the “Knitwear Capital of India,” produces over 50% of India’s cotton knit exports

  • Home to certified sustainable factories (GOTS, BCI, OEKO-TEX)

  • Flexible MOQs and a wide range of customization options

  • Cost-effective compared to Central America or East Asia

  • Vertically integrated supply chains — from yarn to packed garment

⚠️ Watch Out For:

  • Slightly longer shipping time (~25–35 days)

  • Complex documentation if you’re new to sourcing from India

💬 “India is the #1 choice if you want quality cotton clothing manufacturing without Section 301 tariffs, great pricing, and strong supply chain ethics.”

🥈 2. Honduras – Nearshoring With Zero Duties (CAFTA-DR)

Best for: Fast fashion replenishment, blank basics, T-shirts
Tariff Status: Duty-Free under the CAFTA-DR agreement

✅ Why Choose Honduras?

  • Nearshoring advantage: Cut shipping times to 2–3 weeks

  • Stable political and trade environment

  • Used by major brands like Hanes and Gildan

  • Strong compliance and labor certifications

⚠️ Watch Out For:

  • Slightly higher labor costs

  • Better suited for basics than for fashion-forward pieces

💬 “If you’re a U.S. clothing importer looking to avoid duties and reduce shipping time, Honduras is your nearshore solution.”

🥉 3. Bangladesh – Ultra Low Cost, But Tariff Risk Remains

Best for: High-volume T-shirt production, basic knitwear, lounge & innerwear
Tariff Status: Up to 37% in some categories (no GSP privileges)


✅ Why Choose Bangladesh?

  • Among the lowest labor costs in the world

  • Massive export capacity — 3rd largest garment exporter globally

  • Skilled at mass production for big-box retailers

⚠️ Watch Out For:

  • Tariff exposure still exists

  • Lead times are longer: 45–60 days

  • Less flexibility for small buyers or custom work

💬 “Perfect for large importers focused on price, but smaller brands or startups may struggle here.”

🏅 4. Vietnam – Great Quality, But Tariff-Heavy

Best for: High-end cotton garments, fashion-forward knits, activewear
Tariff Status: Up to 46%, no trade deal with the U.S.

✅ Why Choose Vietnam?

  • Excellent craftsmanship and finishing quality

  • Good for technical knitwear and performance blends

  • Growing eco-friendly production capabilities

⚠️ Watch Out For:

  • High import duties unless routed via third-party FTA channels

  • Labor costs are rising annually

  • MOQs are higher than India or Bangladesh

💬 “If you’re focused on quality and consistency, Vietnam delivers—but factor in the higher landed cost due to tariffs.”

🎖️ 5. Cambodia – Once a Star, Now Tariff-Challenged

Best for: Quick turnaround cotton basics, fashion tees
Tariff Status: Among the highest globally — up to 49%

✅ Why Choose Cambodia?

  • Fast production and low MOQs

  • Competitive pricing at factory level

  • Speedy turnaround for basics

⚠️ Watch Out For:

  • Removed from EU and U.S. trade preferences

  • Lack of skilled labor in complex garments

  • Labor and human rights concerns affect compliance

💬 “While Cambodia used to be a go-to for low-cost sourcing, the Trump tariffs and policy changes make it an expensive risk today.”

📊 At a Glance: Tariff & Sourcing Comparison Table

Rank Country Tariff Impact Best For Key Advantage
1 🇮🇳 India Low–Moderate Cotton Tees, Knitwear High flexibility + Quality + Cost
2 🇭🇳 Honduras None (FTA) Basics, Nearshoring Duty-free & Fast shipping
3 🇧🇩 Bangladesh Moderate–High Bulk T-shirt production Cost leadership
4 🇻🇳 Vietnam High Quality knits, fashion pieces Finishing quality
5 🇰🇭 Cambodia Very High (49%) Fast, small orders Speed (but tariff makes it costly)

🔍 Need More Help?

Are you a U.S. clothing importer searching for tariff-free textile sourcing options? Want introductions to clothing manufacturers avoiding U.S. tariffs or FTAs to leverage?

👉 Contact us for a free consultation or explore our network of certified factories in India.

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