What Are Tariffs and How Will They Affect Your Fashion Brand?
By Emma Golley | September 20th 2026
If you're developing a fashion brand and manufacturing overseas, tariffs are something you need to understand- even if you never plan to become an expert in customs or international trade.
They can have a significant impact on the final cost of your product, particularly when you're importing larger production orders, so it's important to factor them into your costing from the beginning.
What actually is a tariff?
Put simply, a tariff is a tax charged when goods are imported from one country into another. For a fashion brand, this could mean importing clothing manufactured in China, Portugal or another country into the United States, UK or Canada.
The amount you pay isn't simply based on where your factory is located. It can also depend on what the product is made from, what type of garment it is, its country of origin and whether any trade agreements or additional tariffs apply.
For example, a cotton T-shirt and a synthetic activewear top can fall under completely different tariff classifications and therefore have different duty rates.
Who actually pays the tariff?
Generally, the importer of record is responsible for paying the duties and taxes associated with importing the goods.
For many of my clients, that means the fashion brand itself.
Your freight forwarder, courier or customs broker may handle the customs process and make the payment on your behalf, but ultimately the importer is still responsible for making sure the goods have been declared correctly and the appropriate duties have been paid.
This is why your factory saying something is "$20 per unit" doesn't necessarily mean that garment will actually cost your business $20 once it arrives.
You also need to consider freight, tariffs, customs fees and other importing costs when calculating your landed cost.
When do you pay tariffs?
Tariffs are normally dealt with when your shipment enters the destination country and clears customs.
In the US, estimated duties are generally deposited as part of the customs entry process. For standard entries, the entry summary and estimated duties are typically due shortly after the goods are released.
If you're using a freight forwarder or customs broker, they'll usually manage this process and either invoice you for the duties or arrange payment before your goods are released.
This means you need to have money available for these costs before your inventory has even reached your warehouse or started generating sales.
Why have tariffs increased?
Tariffs aren't fixed forever. Governments can introduce additional tariffs as part of trade negotiations, economic policy or disputes between countries.
The US tariff landscape has changed significantly since 2025, with a number of additional duties introduced or modified across different countries and product categories. China in particular has been affected by several layers of additional US duties, alongside the standard tariff that may already apply to the garment itself.
There have also been major changes to lower-value imports. The US suspended its previous duty-free de minimistreatment for many low-value shipments, meaning small shipments can now also be subject to applicable duties and fees.
For fashion brands, the important takeaway is simply: don't assume the tariff you paid on your last production order will necessarily be the tariff you pay on your next one.
How do you find out what tariff applies?
Every product is assigned a customs classification or HS/HTS code.
That code is used to establish the duty rate for the product.
In the US, you can search the official Harmonized Tariff Schedule of the United States (HTSUS) published by the US International Trade Commission.
You'll normally need information including:
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The type of garment
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Whether it's knitted or woven
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The fiber composition
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Men's, women's or children's
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The country of origin
Fashion can be surprisingly specific. Two garments that look very similar can have completely different tariff classifications based on their construction or fiber content.
For that reason, once you're getting close to production I always recommend confirming the classification and current duty rate with your freight forwarder or customs broker rather than relying on an online estimate.
What about importing into the UK or Canada?
The same basic principle applies, but every country has its own tariff system.
If you're importing into the UK, you'll use the UK Trade Tariff to find the appropriate commodity code, Customs Duty and applicable VAT. The commodity code and origin of the goods help determine what you'll pay.
UK brands also need to remember that import VAT can form part of the amount due when goods enter the country, so you shouldn't compare a US tariff percentage directly with a UK import cost and assume they're equivalent.
Canada has its own Customs Tariff system, and rates again depend on the product and country of origin. Certain products may receive preferential treatment under Canada's trade agreements, while others are subject to the standard tariff.
Build tariffs into your costing early
Tariffs shouldn't be something you discover when 1,000 units are already sitting at customs.
When you're working out whether a product is commercially viable, think beyond the factory unit price and consider the full landed cost of getting that garment into the country where you plan to sell it.
You don't need to become a customs expert to start a fashion brand. You simply need to know that these costs exist, understand that they can change, and make sure you're working with a good freight forwarder or customs broker who can confirm the current requirements before you place a production order.
Tariffs can feel complicated, but you don't need to understand every detail yourself. The most important thing is to be aware of them early, include them in your costing, and make sure you're checking the current requirements before placing production. A good freight forwarder or customs broker can help you confirm the correct classification and charges, so you're not caught out by unexpected costs once your goods are already on the way.
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