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However, Manders envisions a scenario in which the US government could eventually shift from targeting goods shipped from China to imposing duties based on Chinese content — regardless of the product’s final point of export. “By declaring an emergency and using IEEPA powers to impose tariffs, this round is totally different from the 301 tariffs during Trump’s first administration,” says Hughes. “Back then, there were hearings, public comments, and review. Now, changes can happen in an instant.” That hesitation is evident in the data: there’s little evidence to suggest that the current trade climate has meaningfully accelerated nearshoring to the Western Hemisphere, Lu notes. On the contrary, the numbers tell a different story: in February, just 7.6 per cent of US apparel imports originated from CAFTA-DR member countries — a notable decline from 9.6 per cent a year earlier. Mexico’s share also edged down to 2.3 per cent, compared to 2.4 per cent the previous February. One reason for the stagnation is that even long-standing free trade partners, such as Mexico, are not immune to the uncertainty posed by potential Trump-era tariffs, dampening US brands’ confidence in nearshoring strategies. In addition, production capacity across Mexico and CAFTA-DR member states remains limited — particularly when it comes to the diversity of garments and fibre types — posing a challenge to scaling sourcing efforts.Official Scam Likely Caller Id Shirt
Still, David Spooner, co-chair of the international trade practice at Barnes & Thornburg and counsel to the USFIA, sees opportunity ahead, noting that countries with existing US free trade agreements may eventually benefit, as brands look to mitigate risk and unlock duty savings by sourcing within established trade frameworks. As brands rethink their sourcing strategies, many are first focused on adapting to the immediate reality before overhauling production models. According to Craig Cardon, partner at Sheppard Mullin, most enquiries his firm fields centre on whether it’s possible to list tariffs as a separate line item, rather than embedding them in the product price. The approach offers more flexibility than blanket price increases — allowing brands to adjust charges if tariffs are lifted or cost structures shift.
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