Short answer
The Section 122 emergency tariff is gone: it expired on July 24, 2026 by statutory limit. As of August 2026 Colombian apparel entering the US pays the 12.5% Section 301 duty with a certificate of origin, while Chinese apparel pays 36–52%. What brands do now: verify rules of origin, lock nearshore capacity, and quote landed cost per shipment instead of from a chart.
Key takeaways
- Section 122 expired July 24, 2026; Section 301 (12.5%) applies to Colombian apparel.
- Chinese apparel: 36–52% effective into the US.
- Mexico and CAFTA-DR can still enter duty-free when goods qualify.
- Quote landed cost per shipment; rates change.
What happened on May 7
On May 7, 2026, the U.S. Court of International Trade ruled that Proclamation 11012 — the legal vehicle for Trump's flat 10% Section 122 emergency tariff — exceeded executive authority. The court invalidated the proclamation. Customs and Border Protection, citing pending appeals, has continued to collect duties at the full rate.
The result: a textbook legal limbo. At the time, importers were paying 10% on apparel, with refunds uncertain. Brand directors are getting forwarded the ruling at 9 AM and being asked by their CFO at 9:15 AM what to do.
Here is what we are telling our clients.
The four moves smart brands are making
One. Stop treating the 10% rate as the worst case. Glossy reported last week that brands were "scrambling" — and that scrambling is reactive. If Section 122 falls and the underlying CTPA framework reasserts itself, Colombia returns to its long-standing preferential treatment under yarn-forward rules. China sits at roughly 36 to 52% effective. The relative gap widens, not narrows.
Two. Diversify by geography, not just by factory. Oxford Industries publicly disclosed reducing China sourcing from 40% to 15% in nine months. They did not move to one country — they moved to a portfolio. The brands quietly winning Q2 are doing the same.
Three. Lock in capacity before Q4. McKinsey's 2026 sourcing report shows a 35% cost spike in apparel and 71% of executives planning price increases over the next twelve months. Capacity for fall delivery is already tightening across the Western Hemisphere.
Four. Audit your tech packs. The brands who lose this cycle are the ones still operating with PDF tech packs from 2022. Manufacturers, including us, prioritize incoming orders that arrive with clean digital tech packs. Spend a week here. It compounds.
The Colombia math, side by side
We pulled the numbers that matter for a brand running a 1,000-unit cut-and-sew swim or athleisure order:
| Origin | Effective tariff Q2 2026 | Landed cost premium vs Colombia | Lead time air freight |
|---|---|---|---|
| Colombia | 10% (Section 122) / preferential under CTPA review; 12.5% Section 301 since July 24, 2026 | — | 3 to 5 days |
| Mexico | 10% (USMCA gaps) | +3-8% (USMCA carve-outs) | 3 to 5 days |
| Vietnam | 10% currently, volatility risk | +12-15% | 18 to 25 days |
| China | 36-52% effective | +45-55% | 25 to 35 days |
What we are doing inside Tulum
We are not going to pretend the tariff is good news. It compresses margin for everyone. But we are sitting inside the Antioquia textile cluster with 233,000 people, a 70% hydroelectric grid, a curated partner network for digital print and sublimation, and a planning calendar that is already accepting fall 2026 orders.
If you have a tech pack and a delivery deadline, we can give you a costed quote in 48 hours and a sample in about 4 weeks. That is the only honest answer to a moving tariff floor: replace volatility with cadence.
Common questions
Is the Section 122 tariff still in force?
No. It expired on July 24, 2026 by statutory limit. What applies to Colombian apparel as of August 2026 is the 12.5% Section 301 duty.
Does the certificate of origin remove the 12.5%?
No. The US–Colombia agreement’s certificate of origin removes the MFN base duty, but the 12.5% Section 301 duty is paid regardless. Only USMCA and CAFTA-DR goods are exempt from it.
What should a US brand do now?
Verify rules of origin per style, quote landed cost per shipment instead of from a chart, and lock nearshore capacity: Tulum runs 150 units per style in 6–8 weeks.