HS Code:
Apparel goods described in U.S. note 2 to this subchapter and entered pursuant to its provisions fall under specific Harmonized System (HS) codes related to textile and clothing products. These goods typically include articles of apparel and clothing accessories, knitted or crocheted, as well as woven garments, often subject to specific quota restrictions and preferential trade agreements under U.S. trade programs. This category encompasses a wide range of products such as shirts, trousers, dresses, and outerwear, with provisions often linked to trade agreements like the USMCA (United States-Mexico-Canada Agreement) or other regional trade pacts.
Total Trade Volume
USD 90.5 billion
Data from 2022
Source
United States International Trade Commission (USITC) and World Trade Organization (WTO) data
Average Rate
12.5%
Highest Rate
32.0% (for certain woven apparel categories)
Lowest Rate
0% (under preferential trade agreements like USMCA)
Shift towards sustainable and ethical fashion
Increased demand for apparel made from organic or recycled materials, pushing manufacturers to adopt sustainable practices; affects sourcing and production costs.
2021-2023
Nearshoring in apparel production
Growing preference for sourcing from closer regions like Central America and Mexico to reduce supply chain delays and costs, boosted by USMCA provisions.
2020-2023
Decline in Chinese dominance
Diversification of supply chains away from China due to tariffs and geopolitical tensions, benefiting countries like Vietnam and Bangladesh.
2019-2023
Revised rules of origin under the USMCA have tightened requirements for apparel goods to qualify for duty-free access, emphasizing regional yarn and fabric production.
July 2022
Encourages production within North America but increases compliance costs for manufacturers.
Continued Section 301 tariffs on Chinese apparel imports remain in place, with rates up to 25% on certain categories, prompting U.S. buyers to seek alternative suppliers.
March 2023
Reduces Chinese market share while boosting imports from Southeast Asia.
Bangladesh is negotiating enhanced trade preferences with the EU, potentially impacting its competitiveness in the U.S. market as well due to cost advantages.
September 2023
Could further increase Bangladesh's share in global apparel exports, including to the U.S.