How are U.S. Apparel Buyers Responding in the Face of High U.S. Tariffs Against China?

Rising tariffs have shifted the ground under the feet of every U.S. apparel buyer sourcing from China. But rather than walking away, many are getting smarter.

Faced with high U.S. tariffs on Chinese apparel, U.S. buyers are diversifying sourcing locations, renegotiating FOB terms, focusing on DDP models, and investing in better long-term supplier partnerships for value and flexibility.

At Fumao, we’ve worked closely with buyers adjusting to this new environment—not by cutting ties, but by optimizing cost, quality, and compliance.

Will clothing from the US have tariffs?

Yes—but the key issue isn’t U.S.-made clothing. It’s imports, especially from tariff-targeted countries like China.

Clothing made in the U.S. doesn’t face import tariffs, but most apparel sold in the U.S. is imported—and Chinese apparel is now heavily tariffed.

What are current tariff realities for U.S. buyers?

The U.S. imposes standard MFN (Most-Favored Nation)¹ tariffs on all apparel imports. But since 2018, additional Section 301 tariffs² have increased duties on many Chinese clothing products—by 7.5% to 25%, depending on category.

For example:

Tariffs apply to the declared customs value, which increases final landed cost and affects retail margins.

Does this affect all Chinese apparel?

Not equally. Some accessories or blended fabrics fall into different HS codes with lower tariffs. That’s why U.S. buyers often:

• Work with suppliers to optimize HS code classification³
• Use DDP (Delivered Duty Paid) pricing to manage risk
• Diversify categories to reduce average tariff impact

Which explains how US tariffs affect the prices of Chinese and US goods?

Tariffs are taxes. They don't punish exporters directly—they make importers pay more, which can raise prices or squeeze margins.

U.S. tariffs on Chinese goods increase the cost of imports, often leading to higher retail prices, supplier renegotiations, or margin cuts for U.S. apparel brands.

How do tariffs typically play out in the apparel sector?

We’ve helped several buyers use FOB price renegotiation⁴ to share tariff burdens with Chinese partners. In exchange, we provided:

• Faster delivery terms
• Pre-customs DDP planning
• Cost-saving fabric swaps

Do tariffs always lead to inflation?

Not always. Some buyers cut costs elsewhere⁵—e.g., simplifying trims or reducing SKUs. But price increases are common, especially in fast fashion and seasonal goods.

At Fumao, we help clients balance between value engineering⁶ and category reallocation—so cost doesn’t kill quality.

What is the effect of a tariff on imports to the US?

Tariffs increase the total landed cost for buyers—and those costs ripple through the system.

The immediate effect of a tariff on U.S. imports is increased buyer cost, which can lead to higher retail prices, lower demand, supply chain shifts, or margin compression.

How are U.S. apparel buyers responding to this?

• Nearshoring⁷ to Mexico or Central America
• Shifting to Vietnam, Bangladesh, India
• Staying with China but adjusting terms (smaller runs, DDP pricing)
• Ordering earlier to avoid peak customs delays

One of our buyers switched from full production in China to fabric sourcing in China + sewing in Vietnam⁸—bypassing direct Chinese origin tariffs on some HS codes.

We also supported a brand in shifting 60% of their basic T-shirt production to Bangladesh for lower duty⁹, while maintaining high-volume outerwear with us in China using optimized packaging + tariff classification.

What tariffs does the US have against China?

The U.S. government imposes both base tariffs under WTO rules and additional punitive tariffs under Section 301 targeting China specifically.

U.S. tariffs against China include standard MFN rates plus Section 301 tariffs of 7.5% to 25% across many apparel categories—implemented since the 2018–2019 trade war.

What are the key tariff laws affecting Chinese apparel?

These tariffs affect cut-and-sew goods¹⁰, synthetics, cotton blends, and apparel accessories.

Can factories help U.S. buyers navigate these?

Yes—factories like Fumao are now more involved in:

• DDP arrangements¹¹ (where we handle customs risk)
• HS code strategy¹² (choosing codes with lower duty)
• Split production (components in China, final sewing elsewhere)

Instead of fleeing China, many buyers now optimize their Chinese sourcing through leaner, smarter partnerships.

Conclusion

High tariffs haven’t killed U.S.–China apparel trade—they’ve just changed the game. Buyers are adapting with smarter sourcing, new factory terms, and more flexibility. At Fumao, we’re here to help U.S. brands face tariffs not with fear—but with strategy.