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Updated November 4, 2026. First published April 11, 2025. Every tariff fact below carries its date and an official source. Tariff rules change often, so read them as of November 4, 2026.
Your buying method is the Incoterm on the purchase order. It decides who pays freight, who clears US customs and who pays the duty and tariffs. Under EXW, FCA, FOB, CIF and DAP, the buyer clears import and pays the duty. Under DDP, the seller does, and prices that risk into the quote. If you are the importer, every tariff change lands on you; under DDP it lands on your supplier first and comes back to you at the next price list.
As of November 4, 2026, apparel entering the US pays its regular duty under the Harmonized Tariff Schedule plus, for goods from 60 trading partners, a Section 301 duty of 10% or 12.5% that took effect July 24, 2026. The emergency (IEEPA) tariffs of 2025 ended after the Supreme Court's February 20, 2026 ruling, and the $800 de minimis exemption is still suspended. Confirm the rate for each HTS line with your customs broker before you place the PO.
This is a plain-language guide, not customs or legal advice. AIMS360 makes ERP software and does not file entries. A licensed customs broker should confirm any rate for your product.
US tariffs on apparel: what changed, with dates
| Date | What changed | Official source |
|---|---|---|
| August 29, 2025 | Duty-free de minimis entry for shipments of $800 or less suspended for all countries. | CBP rule, June 24, 2026 |
| February 20, 2026 | Supreme Court holds that IEEPA does not authorize tariffs, ending the 2025 IEEPA tariffs. | Learning Resources, Inc. v. Trump |
| February 24, 2026 | Temporary 10% Section 122 surcharge starts, for 150 days. | Proclamation 11012 |
| June 24, 2026 | CBP makes the de minimis suspension indefinite by rule. | CBP interim final rule |
| July 24, 2026 | Section 122 surcharge ends; Section 301 duties of 10% or 12.5% start on goods from 60 trading partners. | USTR, July 23, 2026; Federal Register notice |
| July 1, 2027 | De minimis exemption ends by statute (Public Law 119-21). | CBP rule, citing the statute |
What applies to imported apparel as of November 4, 2026
Three layers make up the duty on a US apparel entry today. First, the regular duty for the product's HTS line, which you can look up in the Harmonized Tariff Schedule. Second, the Section 301 duty if the goods come from one of the 60 economies in the July 2026 action. Third, customs fees. Goods from China may also carry Section 301 duties from earlier actions; your broker can confirm which apply.
| Origin (common apparel sources) | Section 301 duty from July 24, 2026 | Note |
|---|---|---|
| China, Vietnam | 12.5% | In the group the notice sets at 12.5% |
| Bangladesh, Cambodia, Indonesia | 10% | USTR is to set up tariff-rate quotas for specified textiles and apparel from these three and Malaysia when feasible. Until then the 10% applies |
| India, Pakistan, Sri Lanka | 10% | Added on top of the regular duty |
| Mexico, Honduras, Guatemala, El Salvador | 10% | Check the notice's annexes and trade agreement treatment with your broker |
| European Union, Taiwan | Regular duty plus Section 301 capped at 10% combined | No Section 301 duty where the regular rate is already 10% or more |
| Japan, South Korea, Switzerland | Regular duty plus Section 301 capped at 12.5% combined | No Section 301 duty where the regular rate is already 12.5% or more |
| Made in the USA | None | Imported fabric and trims still pay duty when they enter |
Source: the Federal Register notice of July 28, 2026. Goods already on a vessel were exempt if entered before 12:01 a.m. Eastern on July 28, 2026. For where US apparel comes from and how long it takes, see apparel sourcing trends 2026.
What a buying method (Incoterm) decides
Incoterms are trade terms published by the International Chamber of Commerce. The edition in use as of November 2026 is Incoterms 2020. Each rule is three letters and a named place, for example FOB Ho Chi Minh City. It says where the seller's job ends, who pays which leg of freight, when risk passes and who clears export and import. It does not set the price or say when ownership passes.
Many apparel buyers say FOB to mean the factory price. Under Incoterms 2020, FOB is meant for sea and inland waterway freight. For containers handed to a carrier at a terminal, ICC recommends FCA instead.
EXW, FCA, FOB, CIF, DAP and DDP compared
| Buying method | Seller's job ends | Main freight paid by | US import clearance, duty and tariffs | Usually fits |
|---|---|---|---|---|
| EXW (Ex Works) | Goods ready at the seller's premises | Buyer | Buyer | Brands with their own forwarder who want full control |
| FCA (Free Carrier) | Handed to the buyer's carrier, cleared for export | Buyer | Buyer | Container shipments, the modern version of FOB |
| FOB (Free on Board) | Loaded on the vessel at the port of shipment | Buyer | Buyer | Sea freight where you book the ocean leg |
| CIF (Cost, Insurance and Freight) | Loaded on the vessel; seller pays freight and minimum insurance to the destination port | Seller | Buyer | Buyers who want the supplier to book freight |
| DAP (Delivered at Place) | Arrived at your named place, ready to unload | Seller | Buyer | Door delivery while you stay importer of record |
| DDP (Delivered Duty Paid) | Arrived at your named place, cleared for import | Seller | Seller | First imports, small teams, a fixed delivered price |
Who pays a new tariff under each buying method
The tariff is owed by the importer of record at entry. Under every term except DDP, that is you, so the July 2026 Section 301 duty came straight out of your margin on goods entered from July 24. Under DDP the supplier pays at entry and charges you for carrying that risk. When rates move, DDP prices move too, and you can no longer see how much of an increase is duty and how much is margin. DDP also means the seller, or its agent, clears US customs, so ask who the importer of record will be and who keeps the entry records.
How to compare an FOB quote with a DDP quote
- Start from the factory price
The FOB, FCA or EXW quote itself.
- Add freight and insurance
Per unit, from your forwarder.
- Add the regular duty
The rate for your HTS line, on the customs value of the goods.
- Add Section 301 if the origin is covered
10% or 12.5% from July 24, 2026, or the combined cap for EU, Taiwan, Japan, South Korea and Switzerland goods.
- Add brokerage, customs fees and inland delivery
Spread across every unit in the shipment.
- Compare the total with the DDP price
A small gap may be worth paying for simplicity. A large one is the supplier's premium for tariff risk.
Which buying method fits your brand
| Your situation | Usually fits | Why |
|---|---|---|
| First imports, no broker or forwarder yet | DDP | One delivered price while you learn the process |
| Steady volume from a few factories | FOB or FCA | You control freight, consolidation and the broker, and see each cost |
| Selling to US retailers with strict ship windows | FOB or FCA with your own forwarder | You control the booking that decides whether you hit the window |
How AIMS360 holds cost for imported styles
AIMS360 is a standard costing system. Each style's importer costing tab holds the FOB price by color plus your estimated duty, freight by sea or air and other costs, which together give the landed estimate used for margin. The FOB cost carries onto the vendor purchase order by default. At receipt you can actualize the cost, and a variance report compares standard with actual by style and color. Production tracking shows units on the water, in customs and on the truck. Duty rates come from your broker; when a tariff changes, update the duty estimate on the affected styles.
Frequently asked questions
Who pays tariffs under FOB?
The buyer. The seller's job ends when goods are loaded on the vessel, so the buyer pays ocean freight, clears US customs and pays the duty and tariffs at entry.
Who pays tariffs under DDP?
The seller, who delivers cleared for import and pays duty and tariffs. Expect a premium for that risk in the price, and a new price when rates change.
What tariffs apply to clothing imported into the US as of November 2026?
The regular duty for the product's HTS line, plus a Section 301 duty of 10% or 12.5% on goods from 60 trading partners that took effect July 24, 2026. Goods from China and Vietnam are at 12.5%; Bangladesh, Cambodia, Indonesia, India, Pakistan, Sri Lanka and Mexico are at 10%. Confirm each HTS line with a customs broker.
Are the IEEPA tariffs still in effect?
No. On February 20, 2026, in Learning Resources, Inc. v. Trump, the Supreme Court held that IEEPA does not authorize tariffs. A temporary 10% Section 122 surcharge ran from February 24 to July 24, 2026, and the Section 301 duties began on July 24, 2026.
Is the $800 de minimis exemption still available?
No, as of November 4, 2026. It has been suspended for all countries since August 29, 2025, CBP made the suspension indefinite by rule on June 24, 2026, and the exemption ends by statute on July 1, 2027.
Which Incoterms version should I use?
Incoterms 2020, the current ICC edition as of November 2026. Write it on the PO, for example FCA Shanghai Incoterms 2020.
Does AIMS360 calculate tariffs?
No. Duty rates and classification come from your customs broker. AIMS360 holds your estimated duty, freight and other costs on each style's importer costing tab, uses that landed estimate for margin, and lets you compare it with the actual cost at receipt.
Sources
Checked November 4, 2026. Tariff rules change often; these were in effect as of that date.
- Supreme Court of the United States, Learning Resources, Inc. v. Trump, No. 24-1287, decided February 20, 2026.
- Proclamation 11012, Imposing a Temporary Import Surcharge, Federal Register, February 25, 2026.
- USTR, USTR Takes Action in Forced Labor Section 301 Investigations, July 23, 2026.
- Federal Register, Notice of Actions in Section 301 Investigations, July 28, 2026.
- U.S. Customs and Border Protection, Indefinite Suspension of the De Minimis Exemption, interim final rule, June 24, 2026.
- International Chamber of Commerce, Incoterms 2020.
- U.S. International Trade Commission, Harmonized Tariff Schedule.
Related reading
Updated November 4, 2026 by the AIMS360 team against the official sources listed above. This page will be wrong the day the rules change again; check the date before you use it.
Bring one imported style and its cost sheet. We will set up importer costing in AIMS360 and show the margin with the July 2026 tariff in it.
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