Trump’s 100% Tariff Threat on China: What It Means for U.S. Apparel and the Push Toward Nearshoring
As the United States edges toward another round of high-stakes trade negotiations, former President Donald Trump has reignited talk of sweeping tariffs — including the possibility of 100% duties on imports from China. The move, reportedly tied to an upcoming meeting with Chinese President Xi Jinping, has sent a fresh wave of uncertainty through global manufacturing and apparel supply chains.
While the rhetoric is familiar, the magnitude of the proposed tariffs signals something far larger: a forced realignment of sourcing strategies for U.S. brands, particularly in categories like knits, fleece, and performance apparel that have historically relied on Asia.
From Trade Leverage to Supply-Chain Reality
Trump’s latest comments revive a long-running debate about who truly pays the cost of tariffs. Economists have repeatedly shown that U.S. companies — not foreign exporters — bear most of the financial burden, often passing those costs on to consumers through higher prices.
In 2018–2019, when similar tariffs were implemented, the apparel sector saw margin compression, delayed deliveries, and brand dislocation. This time, however, the industry is better prepared. Many brands have spent the past five years diversifying production away from China, building capacity in Vietnam, India, Pakistan, and particularly the Western Hemisphere.
Central America’s Strategic Advantage
Factories in Guatemala, Honduras, and El Salvador are now in a prime position to capture production volume that once flowed through Asia.
For brands managing cost, lead time, and tariff risk, Central America offers three critical advantages:
Speed-to-Market: Lead times from Guatemala to the U.S. average 30–45 days faster than from Asia.
Duty-Free Access: Under CAFTA-DR, qualified goods can enter the U.S. tariff-free — a powerful hedge against a 100% tariff scenario.
Traceability and Compliance: Regional manufacturing hubs have evolved, with digital systems that track everything from fiber origin to finishing compliance — a key factor for brands navigating ESG and traceability audits.
At MTAR, we’ve seen first-hand how these nearshoring advantages translate into stronger brand resilience. Shorter supply chains not only lower risk but also support U.S. trade policy alignment by encouraging hemispheric production.
Resilience Through Regionalization
If tariffs do rise, many brands will face immediate cost shocks on landed goods. Those that have already diversified production will be able to stabilize pricing, ensure continuity, and maintain delivery schedules to key retail and e-commerce partners.
The coming months will likely test how fast brands can pivot sourcing, adjust HTS codes, and realign logistics strategies. What was once optional is quickly becoming essential — regionalization isn’t just a cost play, it’s a risk strategy.
MTAR’s Role in the New Tariff Landscape
MTAR continues to help brands transition toward sustainable, compliant, and tariff-resilient production models.
From lightweight tees to heavyweight fleece, our regional manufacturing network offers:
Customizable fabric weights (130–600 GSM)
Flexible MOQs (3,600 units)
Lead times from 30–120 days, depending on complexity
Integrated quality and compliance monitoring
As trade policy shifts again, brands that act now will be positioned to avoid disruption and capture market advantage— with partners that understand both production and policy.