Swatch card No. SW-3901 · cut October 14, 2026

Trade & TariffsMill spec card

Apparel Tariffs Climb to 22.7% as Section 301 Duties Reshape Trade Flows

Section 301 duties lifted U.S. apparel tariffs to 22.7% in August. Canada imports surged 32.8% by value, India fell 31%, and China edged up 2.3% as buyers raced to beat new duties.

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Spec notes

  1. Average apparel tariff rate hit 22.7% in August, up from 21.5% in July, the highest since March
  2. Section 301 duties of 10-12.5% on 60 trading partners took effect July 24, 2026
  3. U.S. apparel imports from India fell 31% year over year in August 2026
  4. U.S. apparel imports from Canada rose 32.8% year over year by value in August 2026
  5. Brazil's apparel tariff rate reached 38% in August, up from 23.5% in July
August Import Data Reveals Topsy-Turvy Apparel Trade Environment Driven by Tariff Turmoil
Chip 01 · SW-3901August Import Data Reveals Topsy-Turvy Apparel Trade Environment Driven by Tariff Turmoil — AI-generated

Apparel tariffs imposed on U.S. imports climbed to 22.7 percent in August, up from 21.5 percent in July, according to Dr. Sheng Lu. The professor and graduate director of fashion and apparel studies at the University of Delaware tracks monthly customs data.

What's behind the 22.7 percent rate?

Section 301 duties (trade penalties tied to unfair labor or trade practices) worth 10 to 12.5 percent took effect July 24 on 60 trading partners. The Office of the U.S. Trade Representative launched the underlying forced labor probe in March. A separate Section 301 investigation into Brazil lifted that country's average apparel duty to 38 percent, up from 23.5 percent in July, a rate that now exceeds China's average tariff burden.

The administration rebuilt duties under Section 301 of the Trade Act of 1974 after the Supreme Court dismantled President Donald Trump's "reciprocal" tariff scheme on Feb. 20. The pivot left brands less than a month to adjust landed cost (delivered price including freight and duties) calculations.

Why did India imports collapse 31 percent?

U.S. apparel imports from India tumbled 31 percent year over year in August. Bilateral talks between New Delhi and Washington had already faltered over India's inclusion in the forced labor tariff directive. The Senate's Sept. 16 passage of the Sanctioning Russia Act added a 100 percent tariff threat against buyers of Russian oil, intensifying the trade dispute with a country Washington had once cast as a China alternative. Trump signed the bill into law two days later.

Indian suppliers told industry contacts they plan to pivot toward European markets or grow domestic sales. That pivot is now visible in the import data.

Why did Canada imports jump 32.8 percent?

Apparel imports from Canada grew 32.8 percent year over year by value in August as buyers pulled shipments forward. The surge preceded 50 percent Section 338 tariffs (national security duties) that took effect Aug. 22 on Canadian goods. Canada retaliated in early September with near-analogous duties on more than $20 billion in American products, escalating a routine dispute into an open trade war.

"This is unusual, but definitely it's related to the announcement of [the] 50 [percent] tariffs," Lu said. "Companies rushed to gather products."

Lu noted the value spike hides a quantity mismatch. High-value outerwear, like Canada Goose parkas, drove the increase. A normal seasonal lift cannot explain a one-third jump in a single month.

What does China's 2.3 percent growth really mean?

U.S. apparel imports from China rose 2.3 percent year over year in August, edging past Vietnam's growth. Tariff convergence (the narrowing of duty gaps between competing origins) plus thawing bilateral relations drove the rebound. Trade officials held several productive rounds of talks through summer. Trump hosted President Xi Jinping at the White House in September.

The two leaders extended the Busan Agreement terms through January, committing to no tariff hikes during that window, a détente (a temporary easing of trade hostility) reportedly influencing sourcing decisions at the margin.

"In recent months, people have interpreted the current trend as stabilizing," Lu said.

How are total apparel volumes holding up?

U.S. apparel imports in August rose 0.2 percent by value but fell 6.3 percent by quantity versus August 2025. Rising unit prices, not volume, drove the import bill. Lu pointed to a shift toward higher-value categories. Here is the August trade picture at a glance:

  • Average apparel tariff rate: 22.7 percent (up from 21.5 percent in July)
  • Brazil apparel tariff rate: 38 percent (up from 23.5 percent in July)
  • Imports from China: +2.3 percent year over year
  • Imports from India: -31 percent year over year
  • Imports from Canada: +32.8 percent year over year by value

Sourcing teams are cutting SKU count (unique product variants in a line) and adopting AI forecasting tools, attempting to limit exposure to duty regimes that change faster than seasonal planning cycles can absorb. Holiday inventory moved earlier than usual, Lu said.

"I think it's a very strong signal, and I think this trend could continue in the next few months," Lu said of the tariff trajectory, though he offered no formal forecast.

The next data set from Lu arrives with September customs figures in November.

via Sourcing Journal (Source)

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Priya Raman

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Correspondent covering people, launches and day-to-day practice in fashion industry as a trade and business at The Fabric Brief.

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