Textile and Apparel Tariffs: A Guide for Fashion Importers
Textile and apparel products face some of the highest U.S. import duties, with rates ranging from 10% to 32% depending on fiber content, construction method, and country of origin. These goods are classified under HS Chapters 50-63 and are subject to complex rules of origin, particularly under the U
Textile and apparel products face some of the highest U.S. import duties, with rates ranging from 10% to 32% depending on fiber content, construction method, and country of origin. These goods are classified under HS Chapters 50-63 and are subject to complex rules of origin, particularly under the USMCA's yarn-forward requirement, which mandates that garments must be made from North American yarn and fabric to qualify for duty-free treatment.
In this guide, you'll learn:
- How textile tariff rates vary by fiber content and product category
- Which HS chapters cover textiles and apparel (Chapters 50-63)
- How yarn-forward rules work under USMCA
- What preferential trade programs benefit fashion importers
- How to correctly classify textile products by fiber composition
- Strategies to reduce textile import duties legally
What Are Textile and Apparel Tariffs?
Textile and apparel tariffs are customs duties imposed on imported fabrics, clothing, and related products when they enter the United States. These duties are among the highest in the U.S. tariff schedule, with most textile products facing rates between 10% and 32% of their declared value [U.S. International Trade Commission, 2024].
The U.S. applies complex tariff structures to textiles based on three primary factors:
- Fiber content (cotton, synthetic, wool, silk, or blends)
- Manufacturing stage (raw fiber, yarn, fabric, or finished garment)
- Country of origin and applicable trade agreements
Textiles receive higher protection than most other product categories due to historical U.S. textile industry lobbying and employment concerns. The Multi-Fiber Arrangement (MFA), which governed textile trade from 1974-2004, established quotas and high tariffs that persist in modified form today [World Trade Organization, 2005].
Which HS Chapters Cover Textiles and Apparel?
The Harmonized System dedicates 14 chapters to textile and apparel products, spanning HS Chapters 50 through 63. Each chapter focuses on specific fiber types or product categories:
| HS Chapter | Coverage | Example Products | Typical Duty Range |
|---|---|---|---|
| 50 | Silk | Silk fabrics, silk yarn | 0.9% - 11.3% |
| 51 | Wool and animal hair | Wool suits, wool fabric | 5.6% - 25% |
| 52 | Cotton | Cotton t-shirts, denim jeans | 7.1% - 16.5% |
| 53 | Vegetable fibers | Linen fabric, jute bags | 4.4% - 15% |
| 54 | Man-made filaments | Polyester fabric, nylon thread | 8.5% - 25% |
| 55 | Man-made staple fibers | Acrylic yarn, polyester fabric | 12% - 25.9% |
| 56 | Wadding, felt, nonwovens | Felt sheets, disposable wipes | 4.4% - 16% |
| 57 | Carpets and textile floor coverings | Area rugs, carpet tiles | 2.5% - 13.2% |
| 58 | Special woven fabrics | Lace, embroidery, terry cloth | 7.1% - 18.8% |
| 59 | Impregnated/coated textiles | Canvas, rubberized fabric | 5.8% - 18.2% |
| 60 | Knitted or crocheted fabrics | Jersey fabric, elastic fabric | 8% - 23.5% |
| 61 | Knitted/crocheted apparel | T-shirts, sweaters, hosiery | 10.2% - 32% |
| 62 | Woven apparel | Dress shirts, pants, suits | 9.4% - 29.7% |
| 63 | Other made-up textile articles | Bed linens, curtains, towels | 6.3% - 20.9% |
Key Classification Rule: Products move from lower chapters (raw materials) to higher chapters (finished goods). A cotton dress shirt starts as cotton fiber (Chapter 52), becomes cotton yarn (also 52), then woven cotton fabric (52), and finally a finished shirt in Chapter 62.
How Does Fiber Content Affect Tariff Classification?
Fiber content is the single most important factor determining textile tariff rates. The same garment can have dramatically different duties depending on whether it's made from cotton, polyester, or a blend.
Primary Fiber Classification Rules
U.S. Customs classifies textile products based on weight percentage of fibers present. The general hierarchy follows:
- Chief weight rule: The fiber representing the greatest weight percentage determines classification
- Blend thresholds: Products with 50%+ of one fiber classify under that fiber's chapter
- Mixed fiber headings: Some HS codes exist specifically for blends (e.g., cotton-polyester blends)
Real Tariff Rate Comparison
Consider a basic crew-neck t-shirt (HS heading 6109):
| Fiber Composition | HS Code | Normal Trade Relations Rate | Source |
|---|---|---|---|
| 100% cotton | 6109.10.00 | 16.5% | [USITC HTS, 2024] |
| 100% polyester | 6109.90.10 | 32% | [USITC HTS, 2024] |
| 60% cotton / 40% polyester | 6109.10.00 | 16.5% (cotton chief weight) | [USITC HTS, 2024] |
| 50% cotton / 50% polyester | 6109.10.00 | 16.5% (cotton wins at equal weight) | [USITC HTS, 2024] |
| 100% silk | 6106.10.00 | 1.7% | [USITC HTS, 2024] |
Important Note: Cotton generally receives lower duty rates than synthetic fibers due to the Caribbean Basin Initiative (CBI — a U.S. trade preference program that benefits cotton apparel from Central America and the Caribbean) and historical U.S. cotton industry influence [Congressional Research Service, 2023].
Blended Products: A Classification Example
Scenario: You're importing women's woven trousers with the following fiber content:
- 45% polyester
- 35% cotton
- 20% rayon
Classification Process:
- Identify the chapter: Woven apparel = Chapter 62
- Identify the product type: Women's trousers = Heading 6204.6
- Determine chief weight fiber: Polyester at 45%
- Final classification: 6204.63.35 (women's synthetic fiber trousers)
- Duty rate: 28.2% [USITC HTS, 2024]
If you restructured that same garment to 55% cotton, 25% polyester, 20% rayon, it would classify under 6204.62.40 with a 15.4% duty rate — saving 12.8 percentage points.
What Is the Yarn-Forward Rule Under USMCA?
The yarn-forward rule is the cornerstone of USMCA's (United States-Mexico-Canada Agreement) textile and apparel provisions. This rule requires that garments be made from North American yarn and fabric to qualify for duty-free treatment between the three countries.
How Yarn-Forward Works
For a garment manufactured in Mexico to enter the U.S. duty-free under USMCA, the following production stages must occur in North America:
- Yarn production (spinning fiber into yarn)
- Fabric formation (weaving or knitting yarn into fabric)
- Garment assembly (cutting and sewing fabric into finished goods)
Example of Compliant Supply Chain:
- Cotton grown anywhere (including outside North America)
- Cotton spun into yarn in North Carolina
- Yarn woven into denim fabric in Mexico
- Denim cut and sewn into jeans in Mexico
- Jeans exported to U.S. duty-free
Example of Non-Compliant Supply Chain:
- Cotton grown in India
- Cotton spun into yarn in India
- Yarn woven into denim fabric in India
- Fabric shipped to Mexico
- Denim cut and sewn into jeans in Mexico
- Jeans exported to U.S. facing 16.6% duty (no USMCA benefit)
Exceptions to Yarn-Forward
USMCA includes limited exceptions through "tariff preference levels" (TPLs — quantitative limits allowing certain products to receive preferential treatment despite not meeting standard rules of origin) and "short supply" lists:
- TPLs: Allow specified quantities of apparel made from non-USMCA fabric to enter duty-free
- Short supply list: Covers fabrics not commercially available in North America (certain technical fabrics, specialty weaves) [USMCA Agreement Text, Chapter 6, 2020]
Cost Impact Example
Scenario: U.S. fashion brand imports 10,000 women's cotton blouses from Mexico
| Supply Chain Approach | Yarn Origin | Fabric Origin | USMCA Eligible? | Duty Rate | Total Duty Cost |
|---|---|---|---|---|---|
| Full compliance | North Carolina | Mexico | Yes | 0% | $0 |
| Asian yarn/fabric | Vietnam | Vietnam | No | 26.9% | $67,250 (on $250,000 shipment) |
The yarn-forward rule makes Mexican textile production competitive only when using North American inputs. This has driven investment in U.S. yarn and fabric mills while maintaining apparel assembly in Mexico [Office of U.S. Trade Representative, 2023].
What Preferential Trade Programs Benefit Textile Importers?
Several U.S. trade preference programs offer reduced or zero tariffs for textile and apparel imports from specific countries or regions. These programs create strategic sourcing opportunities for fashion importers.
Major Textile Trade Preference Programs
1. USMCA (United States-Mexico-Canada Agreement)
- Coverage: Mexico and Canada
- Benefit: 0% duty on qualifying textiles and apparel
- Key requirement: Yarn-forward rule (described above)
- Most common products: Denim jeans, t-shirts, underwear
- 2023 textile trade volume: $18.7 billion from Mexico [U.S. Census Bureau, 2024]
2. DR-CAFTA (Dominican Republic-Central America FTA)
- Coverage: Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua
- Benefit: 0% duty with similar yarn-forward requirements
- Strategic advantage: Lower labor costs than Mexico with same market access
- 2023 apparel imports: $8.4 billion [Office of Textiles and Apparel, 2024]
3. Caribbean Basin Trade Partnership Act (CBTPA)
- Coverage: 17 Caribbean and Central American countries
- Benefit: Duty-free treatment for apparel assembled in the region from U.S. fabric
- Key requirement: "Cut and sew" from U.S.-formed fabric
- Typical products: T-shirts, underwear, casual wear
- Note: More restrictive than USMCA — requires U.S. fabric, not just North American
4. African Growth and Opportunity Act (AGOA)
- Coverage: 36 sub-Saharan African countries
- Benefit: Duty-free and quota-free access
- Unique advantage: Third-country fabric rule (fabric can come from anywhere for least-developed countries)
- Expires: September 30, 2025 (renewal pending in Congress)
- 2023 apparel imports under AGOA: $1.2 billion [U.S. International Trade Commission, 2024]
- Key sourcing countries: Kenya, Lesotho, Madagascar, Ethiopia
5. Generalized System of Preferences (GSP)
- Current status: EXPIRED since December 31, 2020
- Historical coverage: Developing countries in Asia, Africa, Latin America
- Important note: Textile and apparel were largely EXCLUDED from GSP benefits
- Renewal status: Pending Congressional action with uncertain timeline [Congressional Research Service, 2024]
Comparing Duty Rates: Program Impact
Example Product: Men's cotton knit shirt (HS 6105.10.00)
| Source Country | Applicable Program | Duty Rate | Requirements |
|---|---|---|---|
| China | None (NTR only) | 19.7% | Standard entry |
| Mexico | USMCA | 0% | North American yarn and fabric |
| Vietnam | None | 19.7% | No FTA with U.S. |
| Honduras | DR-CAFTA | 0% | North American or regional fabric |
| Kenya | AGOA | 0% | Simple assembly (fabric from anywhere) |
| Bangladesh | None | 19.7% | GSP excluded textiles even when active |
| Canada | USMCA | 0% | North American production |
Strategic Sourcing Insight: Kenya under AGOA offers the most flexibility because it allows third-country fabric, but this benefit expires in 2025 unless renewed. DR-CAFTA countries like El Salvador offer permanent duty-free access with regional fabric requirements, making them reliable long-term sourcing options.
How Do Textile Tariffs Compare Internationally?
While U.S. textile tariffs are high, they're not the highest globally. Understanding comparative tariff structures helps with strategic market planning.
| Country/Region | Average Textile Tariff | Average Apparel Tariff | Notes |
|---|---|---|---|
| United States | 8.1% | 11.7% | Actual rates 10-32% for apparel |
| European Union | 6.6% | 11.5% | Extensive FTA network |
| China | 9.8% | 16% | Lower than U.S. for many categories |
| India | 10% | 20% | Plus additional GST taxes |
| Brazil | 26% | 35% | Highest in major economies |
| Japan | 8.3% | 9.1% | Extensive TPP commitments |
[World Trade Organization Tariff Database, 2023]
The U.S. maintains high textile tariffs primarily for domestic industry protection, despite having minimal textile manufacturing compared to peak employment in the 1970s [Bureau of Labor Statistics, 2024].
What Are Common Textile Classification Mistakes?
Incorrect tariff classification costs importers millions annually in overpaid duties, penalties, or missed preferential programs. Here are the most frequent errors:
Mistake #1: Misidentifying Fiber Content
Problem: Declaring "100% cotton" when product contains 15% elastane Result: Wrong HS code, incorrect duty rate, potential CBP penalties Solution: Obtain laboratory fiber content testing from certified labs (ASTM International standards)
Mistake #2: Confusing Knit vs. Woven
Issue: Products classified in Chapter 61 (knit) vs. Chapter 62 (woven) have different duty rates Example: Women's knit trousers (6104.63) at 28.2% vs. woven trousers (6204.63) at 28.2% Solution: Understand fabric construction — knits have interlocking loops, wovens have perpendicular threads
Mistake #3: Ignoring Garment Details
Specific garment features change classification:
- Pockets: Men's shorts with side pockets classify differently than those without
- Elastic waistbands: Can move product between tariff categories
- Collar types: Polo shirts vs. crew neck affects classification
- Lining: Lined vs. unlined jackets have different codes
Mistake #4: Missing Special Classifications
Certain products have unique classifications:
- Activewear/athletic apparel: Heading 6211.20 (often lower duties)
- Water-resistant garments: Different heading than standard apparel
- Workwear: Special provisions under heading 6203/6204
- Infant clothing (sizes 0-24 months): Often lower duties than adult sizes
Mistake #5: Incorrect Country of Origin Determination
Textile-specific rule: Country of origin is where fabric becomes garment, NOT where embellishment or finishing occurs Example: Dress sewn in Vietnam, then embroidered in China = Vietnamese origin (assuming major assembly in Vietnam) USMCA complication: Yarn-forward rule means you must track where yarn was spun, fabric formed, AND garment assembled
How Can Fashion Importers Reduce Textile Tariffs?
Beyond trade preference programs, several strategies can legally minimize textile import duties:
Strategy 1: Duty Drawback Programs
Duty drawback (a U.S.