Fashion Tariffs 101

A little context about how tariffs and the trade war impact clothes, shoes, accessories, and travel goods.

Tariffs on U.S. Importers | Tariffs Are Taxes

It’s no secret that much of the clothing and footwear you purchase is imported. We are a highly globalized industry, and your most trusted brands have sophisticated and responsible supply chains across the world. What is surprising is that American brands and their consumers are footing a tariff burden that is outdated, regressive, and even misogynistic!

Did You Know?  

  • The U.S. apparel, footwear, and accessories industry directly employs 3.6 million American workers in good paying jobs in design, R&D, compliance, marketing, and retail in every corner of the United States.
  • The average effective tariff rate on both footwear and apparel is over five times higher than on all other U.S. imports.  
  • Many are surprised to learn that there is STILL an extra burden borne by woman due to a “pink tariff” - U.S. tariff rates on women's clothes and shoes are about three percent higher on average than tariffs on men's clothes and shoes.   
  • The disparity means an extra cost of about $2 billion+ for females (or more precisely, buyers of women's clothes and shoes) as of 2018.
Learn more about the massive tariff burden we face [PDF]

Although fashion’s supply chains have evolved considerably over the past decade alone, the tariffs governing that supply chain are still anchored in the policies that led to the Great Depression. Fashion tariffs are also regressive, not only by disproportionately taxing the disposable income of lower income American more than their richer counterparts, but also by charging higher tariff rates on product that they buy in greater quantities than wealthier Americans. For any conversation regarding new tariffs, it makes sense to address the longstanding gender and income discrimination. 

Learn more about the current tariff landscape around the world with AAFA's tracker of tariffs and trade negotiations by country (for members, login required. Additional unlocked resources below).

 

Tariffs By State

From Arizona to Texas to Pennsylvania, tariff rate increases — like those in 2018-2019 due to Section 301 tariffs on China, and coming soon due to recent tariff announcements and ‘reciprocal tariff reviews’ — raise prices for consumers of many everyday items. Dig into our analysis of 2024 data, state by state, with these one-pagers.

How Can Tariffs Be Strategic? 


Tariffs, thoughtfully applied for strategic ends, can play an important role in advancing U.S. economic and security policies. But across the board tariffs, particularly on fashion articles and materials, and other items that are not made at scale in the United States, only fuel inflation. We look forward to a renewed and invigorated conversation on smart tariff and trade policy, not only to make sure we can fix a centuries old problem, but also to ensure we have the tools to keep us competitive, fashionably so, well into the coming decades.  

Read on with recent comments, testimony, and follow along with #TariffsAreTaxes.

Recent Comments & Testimony

Feb. 20, 2026

AAFA Reacts to Supreme Court Tariff Decision, Urges Expeditious Refunds

Industry reacts to the Supreme Court Decision on the IEEPA tariffs.

Dec. 17, 2025

U.S. Footwear Industry Urges USG End Japanese Footwear TRQs

U.S. footwear industry urges U.S. government to end Japanese TRQs restricting U.S. exports of leather footwear to Japan

Dec. 11, 2025

AAFA Responds to Result of Section 301 Investigation on Nicaragua

AAFA responds to USTR announcement regarding phase-in of Section 301 tariffs on certain Nicaraguan goods beginning January 1, 2026.

Dec. 09, 2025

AAFA Applauds Proposed Three Year Extension of AGOA and Haiti HOPE HELP Programs

AAFA welcomes the proposed three-year extension of AGOA and Haiti HOPE/HELP Programs.

Dec. 03, 2025

AAFA Testimony Endorses USMCA as Strong, Stable, and Vital

AAFA testifies on USMCA.

Nov. 13, 2025

AAFA Welcomes Progress on US Trade Agreements with Key Central American Countries

AAFA reacts to newly announced trade agreements with El Salvador and Guatemala.

WHAT DATES ARE TOP OF MIND IN THE TRADE POLICY WORLD?

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AAFA is closely tracking trade developments, including those directly related to these dates:

  • March 17: Comment period begins for the Structural Excess Capacity Section 301 Investigations
  • March 31: USTR’s National Trade Estimate report is due to Congress
  • April 15: Comment period ends for the Structural Excess Capacity and Forced Labor Section 301 Investigations
  • Mid-April:Estimated Trade Agenda hearings on Capitol Hill with USTR Ambassador Greer
  • May 5-8: Section 301 Structural Excess Capacity public hearings
  • July: Formal USMCA joint review begins, six years after entry into agreement
  • July 24: Section 122 tariffs expire
  • October 24: Deadline for USTR findings on Section 301 investigation into China’s phase-one deal
  • November 10: The one-year suspension of Section 301 maritime actions targeting China’s shipbuilding and logistics sectors—including port fees on Chinese-built or Chinese-operated vessels calling at U.S. ports—expires.
  • January 1: Section 301 tariffs on Nicaragua will increase to 10%.
AAFA members can stay informed with Trade and Customs Committee access. Members of the media are encouraged to contact the AAFA communications team for related questions and comments.

ARE IEEPA TARIFFS STILL BEING ENACTED?

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No. They are no longer in effect as of February 24 (Executive Order) after the U.S. Supreme Court said the IEEPA tariffs were illegal.


HOW LONG WILL THE NEW SECTION 122 TARIFFS BE IN EFFECT?

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The Section 122 tariff expires after 150 days, on July 24, 2026, unless Congress affirmatively votes to extend the tariffs. Questions remain about whether they can be renewed immediately after expiration.


ARE THERE EXEMPTIONS UNDER THE NEW TARIFFS?

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Yes. All products that qualify under the U.S.-Mexico-Canada Agreement (USMCA) and all textile and apparel products that qualify under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). See proclamation (paragraph 14) for details.


WHAT SHOULD COMPANIES BE DOING?

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Consult with legal counsel to assess exposure and compliance strategy. Monitor guidance from Customs and Border Patrol (CBP) and the Court of International Trade (CIT) on IEEPA tariff refunds. Review Executive Orders and trade agreement terms closely.

AAFA members can contact Beth Hughes.


WHAT IS THE STATUS OF THE SECTION 301 INVESTIGATIONS LAUNCH?

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AAFA is discouraged by the Administration’s newly announced Section 301 investigations targeting key apparel and footwear sourcing partners, including Bangladesh, Vietnam, Cambodia, and India. These countries have been strong partners and critical alternatives as our industry has worked to responsibly diversify sourcing away from China in line with the President’s America First trade goals.


Follow with #TariffsHurt #TariffsAreTaxes
Contact us: tariffs@aafaglobal.org | media@aafaglobal.org