The global trade landscape is undergoing significant changes, and apparel brands are feeling the pressure. With new domestic and foreign policy shifts, as well as evolving tariff regulations, the complexities of sourcing, manufacturing and shipping apparel have increased substantially.
For instance, recent changes to the IMMEX program have raised new challenges for brands using Mexico as a hub for manufacturing and shipping goods to the U.S. Additionally, the Trump administration's tariff plans and the closing of the 321 de minimis loophole have created further complexities: previously, U.S. importers could bring goods under $800 into the country duty-free, but now those goods are subject to tariffs, adding unexpected costs for apparel brands.
These policy and tariff changes, particularly those targeting Chinese imports and Mexico-based manufacturing, are disrupting apparel supply chains, requiring brands to rethink their strategies. Navigating these challenges requires a thoughtful approach, and partnering with a 3PL can provide the expertise and resources needed to thrive in this new landscape.
Apparel brands are facing a rapidly changing trade environment. Recent changes to Mexico’s IMMEX program, which previously allowed apparel manufacturers to ship goods to the U.S. duty-free, have forced many companies to adjust. According to Supply Chain Dive, Mexico's president announced a shift in this program that could halt tariff-free imports under certain conditions.
This uncertainty has left many apparel brands scrambling to reassess their strategies, particularly those with established supply chains that rely on Mexico as a key manufacturing or nearshoring hub.
Meanwhile, the Trump administration is proposing significant tariffs on Chinese imports – ranging from – which would affect a wide range of consumer goods, including apparel. For instance, many popular apparel items, such as clothing and textiles, have faced steep duties, raising costs for U.S. importers. As a result, U.S. brands are now seeking new manufacturing, sourcing and fulfillment solutions, as tariffs increase operating costs and disrupt established supply chains.
Another significant development is the closing of the 321 de minimis loophole, where products valued under $800 could be imported duty-free. With the rule changes these goods are subject to tariffs, complicating the logistics for brands that rely on low-cost shipments.
Navigating the regulatory maze created by these changes is no small task, but 3PLs are equipped with the expertise to help apparel brands stay compliant. 3PLs have strategic partnerships with consultants, industry experts and regulatory bodies, allowing them to provide valuable insight into tariffs, duties and compliance procedures.
The expertise of a 3PL becomes particularly important when managing goods sourced from countries with fluctuating tariffs, such as China. For apparel brands that rely heavily on international trade, partnering with a 3PL with a deep understanding of global trade regulations is essential for minimizing disruptions and ensuring operations run smoothly.
With the introduction of tariffs and shifting trade policies, apparel brands are under increased pressure to optimize costs and maintain efficiency. Many brands face a new reality in the form of rising shipping costs, which are being passed down to consumers.
3PLs offer cost-saving strategies by:
For example, some 3PLs can help apparel brands reroute shipments to avoid high-tariff regions, reducing duty costs. In addition, 3PLs provide scalable warehousing solutions, allowing brands to adjust their storage needs based on demand fluctuations, such as those triggered by changes in tariff policy.
By utilizing a 3PL’s network, apparel brands can adapt to changes in tariff structures and continue fulfilling orders at competitive rates. Apparel brands can also shift their fulfillment strategies to maintain cost efficiency amid the uncertainty surrounding tariffs.
In today’s rapidly changing trade environment, visibility into the supply chain is crucial for apparel retailers addressing disruptions. By providing real-time tracking systems, 3PLs help brands stay on top of their inventory, shipping schedules and potential bottlenecks.
Using modern fulfillment technology and data analytics, 3PLs can help brands anticipate disruptions and adjust their strategies accordingly. For instance, if a tariff-related delay occurs at a port or customs checkpoint, 3PLs can help identify alternatives to mitigate delays. This proactive approach, supported by real-time data, enables brands to stay agile and keep their supply chains running smoothly.
The impact of tariffs isn’t limited to the back end of the supply chain – customers could potentially feel the effects, too. Delays due to customs hold-ups, especially with China and Mexico-based shipments, can lead to missed delivery windows, ultimately affecting customer satisfaction.
3PLs help apparel brands meet customer expectations by offering strategic distribution solutions, such as localized warehousing, which reduces transit times. Localized warehousing ensures that products are closer to end customers, helping to speed up deliveries even in the face of tariff-related delays. A 3PL’s ability to ensure quick delivery and reliable fulfillment is crucial for maintaining customer loyalty and meeting expectations, even as tariff-induced disruptions impact the broader supply chain.
With trade policies and tariffs subject to ongoing change, apparel brands must be prepared for future shifts. A proactive approach to supply chain management is key to minimizing risk and ensuring operational continuity. It’s highly beneficial to partner with a 3Pl that plays a vital role in helping brands plan for future regulatory changes through scenario modeling, risk assessments and contingency planning. For example, if new tariffs are imposed or existing ones are adjusted, a 3PL can quickly help brands adapt adjusting inventory strategies. A 3PL provider that helps its retailers stay agile and prepared for future policy changes is essential.
At Cart.com, we understand the challenges apparel brands face in today’s dynamic trade environment. Our team of experts is here to help you navigate tariff changes, optimize your supply chain and stay compliant with ever-evolving regulations. If you’re facing disruptions and are not sure of the best path forward, we have the expertise to help your brand thrive.
Contact our team today to learn how we can help your brand stay agile, compliant and competitive in the face of changing domestic and foreign policies.