The average US apparel tariff rate climbed to 22.7 percent in August, up from 21.5 percent in July, according to analysis from Dr. Sheng Lu of the University of Delaware.

What pushed the tariff rate back up?

Lu tied the jump to Section 301 duties of 10 to 12.5 percent imposed on 60 US trading partners. The duties followed a forced-labor investigation by the Office of the United States Trade Representative launched in March and took effect on July 24.

Average tariff rates on fashion goods had been falling since the Supreme Court dismantled President Donald Trump's sweeping "reciprocal" tariff scheme on Feb. 20. The administration then rebuilt the tariff architecture using other trade statutes, including Section 301 of the Trade Act of 1974.

"I think it's a very strong signal, and I think this trend could continue in the next few months," Lu said.

Why did Brazil's rate spike to 38 percent?

A separate Section 301 investigation into Brazil lifted that country's average tariff rate to 38 percent in August, up from 23.5 percent in July. Brazil now faces a higher apparel rate than China, even though it is not a major apparel exporter. Lu noted Brazil serves as "one leading alternative sourcing destinations besides Asia for footwear."

What changed for China sourcing?

US apparel imports from China rose 2.3 percent in August, outpacing Vietnam's growth. Lu linked the shift to thawing US-China relations. Officials from both countries held several rounds of bilateral talks, and Trump prepared to host Chinese President Xi Jinping at the White House in September.

By September, the two leaders extended the terms of last fall's Busan Agreement until January, pledging not to raise duties on each other during that period.

"It's not like in the beginning of the year, when imports from China significantly went down," Lu said. "In recent months, people have interpreted the current trend as stabilizing."

Why did India drop 31 percent?

US apparel imports from India fell 31 percent in August year over year. Lu traced the drop to tariff threats and stalled bilateral talks. India was already caught in the Section 301 forced-labor directive. The Sanctioning Russia Act, championed by the late South Carolina Senator Lindsey Graham, added pressure by proposing up to 100 percent tariffs on buyers of Russian oil.

The House passed the bill on Aug. 7. The Senate followed on Sept. 16, and Trump signed it into law two days later. Indian suppliers told Sourcing Journal they planned to pivot toward European and domestic markets rather than wait out US uncertainty.

What drove Canada's apparel jump of 32.8 percent?

Imports of Canadian apparel into the US surged 32.8 percent by value year over year in August. Buyers pulled forward shipments ahead of 50 percent Section 338 tariffs that took effect on Aug. 22. Canada retaliated in early September with near-analogous duties on more than $20 billion in American goods.

"Companies rushed to gather products ahead of the cold weather and holiday seasons," Lu said.

Lu pointed out the increase showed up in value, not volume. The category skews toward high-value outerwear, including products from Canada Goose. The one-third jump from August 2025 far exceeds normal seasonal patterns.

"We're comparing August 2026 versus August 2025," Lu said. "The growth rate should reflect general patterns and the growth of the US economy or consumer spending on clothing, but actually, it's far more volatile than basic economic factors, and I think this is largely a reaction to tariffs."

What is the sourcing takeaway?

US apparel imports in August 2026 rose 0.2 percent in value year over year but fell 6.3 percent in quantity. Pricing, not unit volume, is rising. Lu said fashion firms are cutting SKU counts and adopting AI forecasting tools to target imports they expect to move through the holiday season.

Sourcing managers now face a tariff regime that fragments weekly. The decision buyers must make: lock in forward bookings under current Section 301 rates, accelerate high-value pulls from Canada before Section 338 escalates further, or reroute Indian volume toward Europe before the Sanctioning Russia Act reshapes duties again.