At Blue Associates Sportswear, we work with clients all over the world, producing sportswear in our partner factories in China, Vietnam and across Europe. The last 3-4 months have created turmoil with many of our clients in the USA due to the huge increase in tariff charges from imports from China.
Things have recently calmed down with tariffs settling due to trade deals with most of the suppliers to the US.
Current Tariff Rates from China to USA
The Current rate: (August 2025) A 30% tariff applies to all goods imported from China—including fashion and apparel. This comprises of a 20% “fentanyl tariff” and a 10% universal tariff, effective May 14, 2025, and currently set to expire on August 12, 2025. KoalaGainsAP News. This could means the Tariff reduces to a standard 20% long term.
The alternative solution would be to source from alternative places. At Blue Associates Sportswear we work with many performance sportswear factories across Europe, and a new trade deal announced recently results in tariffs being 15% from Europe to US.
Currently, Mexico have tariffs set at 25%, Turkey at 15% and India at 50%.
You would therefore think that it would be more beneficial to move production from China to Europe or back to the USA, however it’s not that simple.
Let’s understand the issues.
Issues producing Sportswear in the USA.
There are very few, quality sportswear factories based in the USA. They differ from the factories in China, with lower technology, investment and infrastructure.
Many US factories are losing their labour force due to ICE deporting immigrants that worked there. Last month, we picked up 2 US clients that were producing in US based factories that have closed down due to the lack of workers due to immigration deportation.
This goes against the plan to bring production back to the US as factories are currently closing because the workforce cannot be found. The same could be said about the UK fashion industry since Brexit, when a lot of capacity within the cottage industry disappeared as workers went back to their European countries.
If the USA are going to bring production back to the US, then a couple of things need to change.
- Investment in technology and infrastructure is required to compete with quality factories in China.
- Increase wages to attract workers into factories
The issue with this is… Who’s going to pay for this?
Producing Sportswear in Europe.
While tariffs are 50% less than China, it seems tempting to move production to make those savings. Note however that the cost of production, excluding tarrifs are far higher than China and so any savings on tariffs will be outweighed by the overall cost of goods.
The production costs in Europe ex works compared to China is 35% more expensive.
Note below an example to show the difference in costs.
Chinese Sportswear Production.
- The goods cost $30 ex works from a quality factory in China.
- The Tariff is 30% and so the cost increases to $39
European Sportswear Production.
- Identical goods will cost 35-45% more than China so the ex works price will be $40.50 – $43.50
- The Tariff is 15% and so the cost increases to $46.57 – $50
The other factor you need to calculate is the cost of sampling and management of the collection. Many EU factories will charge and additional development fee to manage the sampling that range from €500 – €1,000 per style. If you break this down and amortise this over the first bulk production of say 300pcs, this adds an additional cost of up to €3.33 ($3.88)
This therefore brings the European product much closer to $50 – $53
With the plan to scrap the 10% universal tariff later this month, the tarrif from China will potentially decrease to 20%. If this happens, then the following costs apply.
Chinese Production.
- The goods cost $30 ex works from a quality factory in China.
- The NEW Tariff is 20% and so the cost increases to $36
Sourcing sportswear is a complex matter and shouldn’t be purely based on tariffs alone. At Blue Associates Sportswear, we always suggest the best place to produce your activewear is the right factory rather than country.
Pro Tip: Don’t get too caught up in Tariffs and select production based on this. Select the factory based on quality, service, lead-times and skill. Product is king and don’t compromise on any of the above to simply reduce tax.
And remember, tarrifs and trade deals are being negotiated all the time so don’t be surprised if these current tariffs all change tomorrow morning.
If you are looking for advise on sourcing your performance sportswear, please get in touch.