Apparel industry faces highest combined tariff stack in 2026: base MFN (16-32%) + Section 122 (15%) + Section 301 (where China-origin, 7.5%) = up to 50%+ effective. First Sale for Export drops dutiable value 15-30%. CAFTA-DR and USMCA-qualifying production avoids Section 122.
This guide covers Apparel Industry Tariff Strategy. Sector-specific tariff strategy considers HS classification patterns, applicable special tariff regimes (Section 232/301/122), and FTA opportunities.
Practical implementation depends on company size, sector, and operational structure.
Effective tariff stack
China-origin apparel: 39-57% effective. Vietnam: 31-32%. Mexico USMCA: 0%. CAFTA-DR: 0%.
First Sale for Export
Most-leveraged single mitigation. 15-30% reduction in dutiable value with proper three-tier sale documentation.
CAFTA-DR origin requirements
Yarn-forward rules. Specific Tariff Preference Levels (TPLs) for some categories.
Vietnam origin documentation
Substantial transformation in Vietnam required. CBP scrutiny on trans-shipment intensified.
Frequently asked questions
When does this apply?
Most relevant for SMB importers in the named sector or facing the named situation.
What documentation matters?
Standard CBP forms, supplier certificates, BOM analysis, and topic-specific records.
What is the timeline?
Initial assessment 2-4 weeks; full implementation 8-16 weeks depending on scope.
What does this cost?
Project work $5,000-$25,000 depending on complexity. Ongoing retainer for active operations.
How do I begin?
Book a 15-minute scoping call. We confirm fit before any engagement.
Get started
Run a sector-specific tariff exposure assessment for your business.