Trump tariffs on apparel have changed more often than any other part of US import policy, and US clothing brands are still asking the same question: where can we manufacture clothing without paying a heavy penalty? The 2025 reciprocal tariffs added up to 49% on some Asian suppliers, the Supreme Court struck those tariffs down in February 2026, and a new Section 301 forced-labor tariff replaced the stopgap on 24 July 2026. This guide explains how Trump tariffs on clothing work today, compares the five countries US brands most often consider, and shows what each one costs on a real garment. Rates are as of 3 October 2026.
Trump Tariffs on Apparel: The 2025 to 2026 Timeline
| When | What Happened |
|---|---|
| April to August 2025 | Reciprocal tariffs under IEEPA took effect, reaching 37% to 49% on Bangladesh, Vietnam, and Cambodia at their peaks, and 10% to 25% on many others |
| 20 February 2026 | The Supreme Court struck down the IEEPA reciprocal tariffs; importers may be able to claim refunds for duties paid |
| February to July 2026 | A temporary global tariff under Section 122 applied until it expired |
| 24 July 2026 | Section 301 forced-labor tariffs replaced it: 10% for 17 partners including India, Bangladesh, Cambodia, and Honduras, and 12.5% for others including Vietnam and China |
| From September 2026 | Tariff-rate quotas were planned for textile and apparel from Bangladesh, Cambodia, Indonesia, and Malaysia; check whether they are in force |
How Trump Tariffs on Clothing Work Today
A US garment pays three layers of duty. The first is the normal most-favoured-nation (MFN) duty, which averages 16.5% for a typical cotton knit t-shirt and ranges from about 12% to 32% across apparel. The second is the Section 301 forced-labor tariff of 10% or 12.5%, depending on the country. The third applies only to some origins: China pays extra Section 301 duties from earlier years, so Chinese apparel can reach roughly 36.5% or more even before product-specific rates. Free-trade agreements change the first layer: USMCA-qualifying garments from Mexico enter duty free, and CAFTA-DR can remove the MFN duty for qualifying garments from Honduras and its neighbours. Because clothing manufacturing tariffs differ by product and origin, our guide to importing clothes from India sets out the documents and the way duty is calculated.
Top 5 Countries to Manufacture Clothing After Tariffs
These are the five countries to manufacture clothing after tariffs that US brands most often compare. The ranking balances duty, quality, flexibility, and lead time for cotton knitwear and basics.
1. India: Versatile and Competitive on Landed Cost
India has no free-trade agreement with the US, so garments pay the MFN duty plus the 10% Section 301 tariff, about 26.5% on a cotton knit tee. That is below the 29% for Vietnam, and India’s 2025 IEEPA rate of 18% has been replaced by the lower tier. Best for cotton t-shirts, knitwear, kidswear, printed tees, and organic cotton ranges. Tirupur, India’s knitwear capital, accounts for more than half of the country’s cotton knit exports and offers an integrated chain from yarn to packed garment, with GOTS, BCI, and OEKO-TEX certified units. Watch out for sea transit of about 25 to 35 days and documentation that is new to first-time importers.
2. Honduras: Nearshore With CAFTA-DR Benefits
Honduras is a CAFTA-DR member, and qualifying garments can avoid the MFN duty, with textile exemptions applying under the Section 301 notice, so the effective rate for a qualifying tee can be far lower than in Asia. Best for blank basics, t-shirts, and fast replenishment, with sea transit of two to three weeks. Honduras suits large programmes with strong compliance records, used by major US basics brands. Watch out for higher labour costs and a narrower range for fashion-forward pieces, and check that each style meets CAFTA-DR yarn and fabric rules.
3. Bangladesh: Largest Volume, Tariff Quotas Possible
Bangladesh pays the MFN duty plus the 10% Section 301 tariff, about 26.5% on a cotton knit tee, down from 37% to 49% at the 2025 peak. Planned tariff-rate quotas tied to purchases of US cotton could lower that for some products. Best for high-volume t-shirts and basic knitwear. Watch out for longer lead times of 45 to 60 days and less flexibility for smaller or custom orders.
4. Vietnam: Quality Finishing at a Higher Tier
Vietnam sits in the 12.5% tier, so a cotton knit tee pays about 29% in total. Best for technical knitwear, performance blends, and fashion-forward knits with excellent finishing. Watch out for rising labour costs and higher minimums than India or Bangladesh.
5. Cambodia: Fast Turnaround, Still a Quota Question
Cambodia pays the MFN duty plus 10%, about 26.5% on a cotton knit tee, with tariff-rate quotas planned. Best for quick-turn basics and fashion tees. Watch out for limited skills in complex garments, and compliance and labour-rights scrutiny that buyers should audit.
Tariff and Sourcing Comparison
| Country | Section 301 Tier | Example Duty, $5.00 FOB Cotton Tee | Best For |
|---|---|---|---|
| India | 10% | About 26.5%, or $1.33 | Cotton knitwear, kidswear, customisation |
| Honduras | 10%, with CAFTA-DR exemptions | Lower if CAFTA-DR qualifying | Blank basics, speed |
| Bangladesh | 10%, quotas planned | About 26.5%, or $1.33 | Bulk basics |
| Vietnam | 12.5% | About 29%, or $1.45 | Quality knits, technical blends |
| Cambodia | 10%, quotas planned | About 26.5%, or $1.33 | Fast basics |
The examples assume a 16.5% MFN rate; your product code may differ, and duty is calculated on the declared value, not the retail price. Factory price, freight, and lead time often matter as much as duty, so compare landed cost rather than tariff alone. Our guide to apparel sourcing strategy shows how to build that comparison, and our worked example in heavyweight hoodie manufacturing cost includes a US landed-cost calculation.
Our Perspective From Tirupur
Clothing manufacturing tariffs and headlines move faster than factory orders. A garment ordered today lands in three to four months, by which time the rate may have changed again, so the safest strategy is flexibility: a supplier in a country where you are not locked into a single tariff outcome, and a contract that states who bears duty changes. We have seen US buyers pause orders when rates spiked, then return when quality and reliability mattered more than the last duty headline. For basics you need quickly, a nearshore source can make sense, and brands building a US supplier list can start with our guide to finding clothing manufacturers in the US and our list of clothing manufacturers in USA. For labelling and children’s product rules that apply whichever country you choose, see our guide to US clothing rules.
The Synerg, Tirupur, India
For US brands that want cotton knitwear from India under the current tariff, we make t-shirts for US brands, oversized hoodies for US labels, sweatpants for US brands, kidswear for US retailers, and streetwear for US labels. We run our own factory with 100 sewing machines, start knit orders at 300 pieces per colour per style, take 75 to 90 days from purchase order to shipment, and inspect every order to AQL 2.5.
Our recommendation
Choose where to manufacture clothing after the tariffs by landed cost, not the latest headline. Split production if you can, put duty-change terms in your contract, and ask a customs broker to confirm the rate and whether you can claim refunds on duties paid in 2025 and early 2026.
Frequently Asked Questions
What are the Trump tariffs on apparel in 2026?
Most apparel pays the normal MFN duty (about 16.5% for a cotton knit tee) plus a Section 301 forced-labor tariff of 10% or 12.5% by country, in effect since 24 July 2026. China pays additional Section 301 duties.
Which country has the lowest tariff on clothing?
Mexico enters duty free for USMCA-qualifying garments, and Honduras can benefit from CAFTA-DR for qualifying products. Among Asian suppliers, India, Bangladesh, and Cambodia sit in the 10% tier, while Vietnam is in the 12.5% tier.
Did the Supreme Court end the Trump tariffs on clothing?
It struck down the IEEPA reciprocal tariffs in February 2026, but a Section 301 forced-labor tariff of 10% or 12.5% replaced them on 24 July 2026, so clothing still pays an additional duty.
Can I get a refund of tariffs paid in 2025?
Importers may be able to claim refunds of IEEPA duties paid between April 2025 and February 2026. Ask your customs broker how to file.
Is India a good country to manufacture clothing after the tariffs?
Yes for cotton knitwear and customised ranges. India pays about 26.5% on a cotton knit tee, below Vietnam, with strong quality, flexibility, and an integrated cotton supply chain in Tirupur.
About the Author: Karthik Shan
Karthik Shan is the founder and CEO of The Synerg, with 20+ years in the Tirupur textile hub. He publishes practical playbooks for brands on fabric GSM, costing (CM/CMT), AQL quality standards, and export-ready production.
Sources: USTR Section 301 forced-labor final action (July 2026), Holland and Knight and Brownstein Hyatt analyses of the July 2026 action, and US tariff-rate data as of September 2026. Tariff rates change often; confirm with a licensed customs broker. This is not legal or financial advice.