Trump’s new tariffs go live on 7 August. Importantly, the universal tariff remains at 10%. But that will only apply to countries with which the US has a trade surplus.

Those the US has a trade deficit with, will be impacted by a 15% rate, applicable to about 40 countries.

For many US apparel brands and retailers, key trading partners are impacted by Trump’s new tariff rate. Specifically:

Bangladesh: 20%

Bangladesh is the third largest apparel supplier to the US and in May saw shipment value growth of 4.2% to $548m.

Trump had initially floated the idea of a 35% tariff hike on Bangladeshi exporters.

So the final decision (for now) of 20% will undoubtedly bring some relief.

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According to The Bangladeshi Standard, Dr. Khalilur Rahman, Bangladesh’s National Security Advisor and lead negotiator, said: “Protecting our apparel industry was a top priority, but we also focused our purchase commitments on US agricultural products. This supports our food security goals and fosters goodwill with US farming states,” he added. 

“Today, we successfully avoided a potential 35% reciprocal tariff. That’s good news for our apparel sector and the millions who depend on it. We’ve also preserved our global competitiveness and opened up new opportunities to access the world’s largest consumer market.”

Cambodia: 19%

In May, data from the US International Trade Commission shows shipment value increased by 9.5% from Cambodia to $295m.

A 19% tariff rate is a steep climb down from the previously planned 49%, and likely to bring some relief to Cambodian garment and footwear makers.

Earlier this year, Cambodia’s fashion industry and worker representative told Just Style they didn’t have much hope for continued export growth based on the tariff plans.

Cambodia is particularly exposed to the tariffs, given it sold $2.7bn’s worth of knitted and crocheted apparel and accessories to the US in 2024, and $1.2bn’s worth of woven apparel and accessories last year, according to UN data. This is a significant portion of the $11.68bn’s worth of apparel, footwear and travel goods exported by Cambodia in 2024, according to the country’s General Department of Customs and Excise (GDCE).

Commenting on the planned tariffs in April, the Textile, Apparel, Footwear, and Travel Goods Association in Cambodia (TAFTAC) said it caused “concern” among TAFTAC members, workers, as well as the general public over the potential impact on the export of Cambodia’s garment, footwear and travel goods sector.

Meanwhile, Cambodia’s Centre for Alliance of Labour and Human Rights (CENTRAL) executive director Tola Moeun warned the higher tariff rate would see many factories have to shut up shop.

India: 25%

US apparel shipment value from India rose 5.7% to $461m in May, according to the US International Trade Commission.

Trump referred to India as a “friend” on his Truth Social platform, but he also suggested the US will place an “unspecified penalty” on the apparel sourcing major for buying Russian oil and weapons.

GlobalData retail analyst Neil Saunders said India’s “steep tariff rate” made it far less competitive as a manufacturing hub.

While Bob Antoshak, VP of Global Strategic Sourcing & Development at Grey Matters Concept, notes much of the decision stemmed from a dispute over US access to India’s agricultural market.

He tells Just Style: “Modi’s reluctance to back down on agriculture has prompted Trump to up the pressure with higher tariffs, criticism over India’s membership in BRICS, and India’s importation of Russian oil and military equipment over the years. Trump’s bare-knuckle approach could result in a settlement on agriculture, but it could just as easily result in Modi opting to take a pass, which would result in many foreign investors opting to relocate investment to other countries that have already agreed to trade deals with the US.”

Indonesia: 19%

Indonesia saw a 6% US-bound apparel shipment value increase in May to $290m.

Indonesia exported around $11.96bn in textile and garment products overall in 2024, accounting for more than 6% of national manufacturing exports by value and employing nearly 4m people, according to the country’s trade ministry.  

The nation’s fashion and textile industries hope to maintain exports to the US following a bilateral trade deal that cut planned US import tariffs from 32% to 19%.  

They are banking on US buyers diversifying their sourcing from China.

Redma Wirawasta, executive director of the Indonesian Fiber and Filament Yarn Producers Association (APsiFy), told Just Style: “We may not grow exports significantly, but we should be able to maintain our current volume. That’s key to preventing layoffs in the sector.”

The government said the agreement has already helped revive orders from major US buyers, easing pressure on one of Indonesia’s most labour-intensive manufacturing sectors. 

Myanmar: 40%         

According to UNCTAD, Myanmar, along with Madagascar and Mauritius, are among 28 trading partners whose economies are likely to suffer the most as the result of increased tariffs.

In its ‘Escalating tariffs: The impact on small and vulnerable economies’ report, UNCTAD says in many cases, reciprocal tariffs risk devastating developing and least developed economies, without significantly reducing US trade deficits or increasing revenue collection.

Myanmar, whose reciprocal trade tariff is 47% contributes 0.047% to the US trade deficit. The garment sector is still attempting to recover from a devastating earthquake and political turmoil under a military government.

“Any trade concessions they grant would mean little to the United States, while potentially reducing their own revenue collection,” the UN Trade and Develop report underscores.

Nicaragua: 18%

While the ambition for US fashion brands and retailers was to increase apparel sourcing from neighbouring countries, the results do not reflect that.

Nicaragua saw a decline of 11.9% in apparel shipment volumes to 45m SME in April. Honduras also saw a fall.

According to the United States Fashion Industry Association (USFIA) annual Fashion Industry Benchmarking Study, there is no clear evidence that indicates that the Trump Administration’s tariff policy has successfully encouraged US fashion companies to increase domestic sourcing of “Made in the USA” textile and apparel products or to expand sourcing from the Western Hemisphere.”

Dr Sheng Lu, professor of apparel studies at the University of Delaware, told Just Style: “Only about 44% of respondents explicitly say that they would expand sourcing from the Western Hemisphere, and even fewer respondents (17%) plan to source more textiles and apparel ‘Made in the USA’ amid the tariff increase.”

One of the reasons, he suggests is that US fashion companies would prioritise sourcing destinations that can demonstrate competitiveness in costs, flexibility, low minimum order quantity, and vertical manufacturing capability. However, Asian suppliers are regarded as more competitive in these areas than the US and Western Hemisphere suppliers.

Pakistan: 19%

According to the latest data from the US International Trade Commission, US imports of apparel from Pakistan by value increased by 34% to $210m in May.

Earlier this year, several apparel manufacturers told Just Style of the steps they were taking to attract business even in the wake of higher tariffs. Much of this was based on banking that competitor countries like Bangladesh, Vietnam, Cambodia and China would face higher duties.

The country’s Small and Medium Enterprises Development Authority (SMEDA) is set to launch a second phase of its Industrial Stitching Units project, aligned with the federal government’s ‘Uraan Pakistan’ (Fly Pakistan) programme to rejuvenate Pakistan’s economy, promote sustainable development and drive inclusive growth.  

Sri Lanka: 20%

The Joint Apparel Association Forum (JAAF) said it welcomed the revised reciprocal tariff rate of 20% on Sri Lankan exports to the United States and commended the Government of Sri Lanka for its steadfast efforts in securing this critical outcome for the apparel sector.

“The revised tariff rate brings Sri Lanka into closer alignment with other leading apparel-exporting nations in the region — including Bangladesh, Cambodia, Vietnam, Indonesia, and Pakistan — thereby ensuring a more level playing field and preserving the competitiveness of Sri Lanka’s apparel industry in key US markets.

“JAAF remains firmly committed to working in close partnership with the Government of Sri Lanka and our counterparts in the United States to promote ethical labour practices, environmental sustainability, and innovation in apparel manufacturing. We are confident that these shared values, combined with continued diplomatic engagement, will contribute to deeper bilateral trade relations, and pave the way for further tariff reductions in the future.”

Thailand: 19%

Trump had initially floated the idea of a 36% tariff hike on Thai goods.

According to local press, the Thai government welcomed the reduction to 19%.

“This breakthrough deal reflects a major success for Team Thailand in securing a win-win outcome that safeguards our export base and supports long-term economic stability,” Jirayu said. “It also highlights Thailand’s capability to assert itself in global trade amid shifting international trade policies,” said a spokesperson, cited by the Nation Thailand.

Vietnam: 20%

In May, Vietnam overtook China in terms of US apparel imports during May after bagging a 19.1% increase in shipment value to $1.2bn, making it the largest supplier of apparel to the US in value terms.

While the 20% baseline tariff is welcomed, challenges remain for manufacturers and buyers working in this southeast Asian industry hub. 

There is a “transhipment” clause, which would constitute a 40% tariff.

Jubin Alphonse, an Asia research analyst at the EIU, told Just Style: “We believe Vietnamese clothing factories reliant on Chinese inputs will see mounting cost pressures in 2025-26, as products containing significant Chinese content will face elevated tariffs and greater US customs scrutiny.”

Speaking to Just Style, he added that this “will be prompting factories to undertake diversification of input sourcing, albeit slowly, as China supplies nearly 60% of Vietnam’s inputs, eroding the cost competitiveness of Vietnamese exports in the US market.” 

The move could prompt more Chinese makers to set up mills in Vietnam.

But Sunny Lau, Hong Kong-born supply chain and operation manager at Ho Chi Minh City-based Saigon Printer, warned: “Importantly, Chinese mills [setting up local plants] need to comply to strict environmental policy of the Vietnamese authorities, with most of the available provinces making the setting up of dye houses with the limited granting of licenses challenging.” 

Mexico, Canada and China

In addition, Mexico and Canada will continue to face higher tariffs for goods that are not exempt under the US-Mexico-Canada free-trade agreement. 

Under the new terms, Canadian goods not exempted from the USMCA, will see a 35% duty rate, effective 1 August.

While China didn’t see a rate change as per the announcement, the deal signed with China ends in under two weeks so there is a possibility of tariffs changing once again.

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