The United States began charging new tariffs on imports from 60 trading partners on 24 July, and the world’s biggest garment exporters are among the most exposed. US Trade Representative Jamieson Greer announced the Section 301 action on 23 July, after investigations into whether those economies ban imports made with forced labour.
Partners that have committed to adopt and enforce such a ban pay 10%; those that have not pay 12.5%. The duties took effect just as the temporary Section 122 tariffs expired. Those had themselves replaced the tariffs struck down by the Supreme Court in February.
Who pays what
For apparel, the split matters. According to TEXtalks, Vietnam and China pay 12.5%, while Bangladesh, India, Pakistan, Cambodia, Indonesia and Malaysia pay 10%, on top of normal product tariffs. Vietnam supplied 22.2% of US apparel imports by value in the first five months of 2026, against 11.3% for Bangladesh and 9.7% for China.
Goods covered by Section 232 tariffs are excluded, as are USMCA-qualifying imports and certain textiles from Central American partners under CAFTA-DR, according to law firm Holland & Knight.
A quota tied to US cotton
Bangladesh, Cambodia, Indonesia and Malaysia were picked for a textile and apparel tariff-rate quota. A set volume of their exports, linked to how much US cotton and textile input each buys, would enter at a reduced rate. USTR said the arrangement would initially last three years. Holland & Knight noted it could take effect no earlier than 1 September, and TEXtalks reported in mid-August that it was not yet working and needed a separate implementation notice. The sources reviewed do not confirm that it has since started.
The tariff gap between Hanoi and Dhaka is only 2.5 points, but the cotton-linked quota could matter more than the headline rate.
What to watch
- USTR’s implementation notice and the size of each country’s quota.
- Whether more countries adopt forced-labour import bans to move into the 10% tier.
- Shifts in US apparel sourcing between Vietnam, Bangladesh and India.
