Guatemala vs. Vietnam vs. Peru — What Each One Actually Costs You Landed
Three origins, three very different duty pictures in 2026. This is the comparison MTAR runs internally before recommending a sourcing move, laid out so you can run it yourself.
Last updated: August 2026. Tariff policy is contested and shifting, treat the figures below as directional and confirm your specific HTS classification and rate with your customs broker before making a sourcing decision.
The Headline Numbers
On a cotton knit tee (HTS 6109.10.00, 16.5% MFN base rate), here's what Section 301 stacking looks like by origin as of August 2026:
Origin Duty Treatment Effective Rate Transit Time Guatemala CAFTA-DR yarn forward exemption 0%~4 days Peru US Peru FTA zeroes MFN, but a new Section 301 stacking tariff now applies on top 12.5%~3–4 weeks (ocean) Vietnam Section 301 stacks on full MFN base≈29%~4–6 weeks (ocean)
Guatemala: The 0% Baseline
CAFTA-DR's yarn forward rule, yarn spinning and every operation forward occurring in the US or the CAFTA-DR region qualifies Guatemala apparel for duty free entry. That exemption was preserved through 2026's trade policy changes, and a November 2025 framework additionally removed the 10% reciprocal tariff that had applied to qualifying CAFTA compliant apparel. Combined with roughly four-day transit, Guatemala isn't just the lowest duty rate on this table, it's the shortest capital tied up in transit window too.
Peru: The Quiet Change Worth Knowing About
This is the one most sourcing teams haven't fully priced in yet. Peru's FTA with the US used to mean apparel entered duty free, genuinely 0%, same as Guatemala. The new Section 301 forced-labor tariff doesn't respect that exemption the way the old reciprocal tariff framework did: it stacks on top, bringing Peru to roughly 12.5% where it used to be zero. If your sourcing mix includes Peru and your cost model still assumes 0%, that assumption is now out of date.
Vietnam: The Full Stack
Vietnam sits in the 12.5% Section 301 tier with no offsetting trade agreement, so the full stack applies on top of the 16.5% MFN base, landing at roughly 29% effective duty. Add trans-Pacific transit time on top, and Vietnam carries both the highest landed-cost exposure and the longest capital-in-transit window of the three.
What This Means in Practice
A program that costs $10 landed FOB and moves through Vietnam is absorbing roughly $2.90 in duty before it ever reaches a warehouse. The same program through Guatemala absorbs none. That gap doesn't shrink with volume, it scales with it. For a brand running meaningful annual units, the duty differential alone is often larger than most other line items sourcing teams spend time optimizing.
See What This Comparison Means for Your Program
These are directional figures, your actual exposure depends on your specific HTS classification, country of origin, and current program structure. Send us your sourcing mix and we'll walk through the real numbers.