JX Apparel Group
JX Apparel Group
China's share of US women's woven coat imports fell to 17.0% in 2025, down from 30.2% a year earlier; Vietnam took the lead at 33.9%, while Mexico stayed at 0.13% (calculated from US customs import values, HS 6202; UN Comtrade).
The coat business that left China went to another Asian supplier rather than to North America, in a year when Mexico's textile and apparel exports changed by -15%. The tariff schedule points the other way: a USMCA-originating women's wool overcoat enters the US Free, against 41 cents/kg + 16.3% at the General rate (HTS 6202.20.11, 2026). Premium outerwear can also be made largely outside Asia, as the 65% of Canada Goose's fiscal 2026 units made in North America shows. For a US premium women's coat brand weighing China against Mexico and CAFTA-DR, the useful question is which styles can qualify, not which country is cheaper. This analysis aggregates 50 data points from US import records by HS code, the US tariff schedule and federal tariff notices, CONASAMI, CANAINTEX, FAOSTAT and Canada Goose's fiscal 2026 Form 20-F, among other primary sources.
The coat business China lost in 2025 moved to Vietnam, not to North America. China's share of US women's woven coat imports (HS 6202) fell from 30.2% to 17.0% and Vietnam's rose from 27.2% to 33.9% (both calculated), while the nearshore share stayed below 1%: Mexico at 0.13% in both years and five CAFTA-DR members at 0.7%, down from 1.2%.
Scope explains an apparent contradiction. Mexico supplied 2.8% of all US apparel imports (HS 61+62) in January-April 2026 but only 0.13% of US women's woven coat imports (HS 6202) in 2025, because the two figures cover different product scopes, so both are correct. In October 2025 the value of all-apparel imports from Mexico fell 8.5% and from CAFTA-DR 15.3%, even as their shares rose.
For premium wool coats (HS 6202.20) the ranking changes again. Italy was the largest supplier by value in 2025 at 32.6% (calculated), ahead of China at 14.1%, which suggests US buyers already pay for origin when fabric and finish justify it. The demand side of the same market is set out in the reference on North American women's coat market size and demand.
Nearshore suppliers gained share of US apparel imports in October 2025 only because total imports fell faster; their dollar sales still dropped.
Reading of Sheng Lu (FASH455), Patterns of U.S. Apparel Imports, January 2026
| Metric | Value | Source |
|---|---|---|
| Top two suppliers of US women's and girls' woven coat imports (HS 6202), share of import value, 2024 and 2025 (calculated) | Vietnam 33.9% in 2025 (27.2% in 2024); China 17.0% in 2025 (30.2% in 2024) | UN Comtrade Database: US imports of HS 6202 by partner, 2024 and 2025 (US Census Bureau customs data) |
| Mexico and CAFTA-DR shares of US women's and girls' woven coat imports (HS 6202), 2024 and 2025 (calculated) | Mexico 0.13% in both years ($2.55 million and 131,460 coats in 2025); five CAFTA-DR members combined 0.7% in 2025 ($13.4 million), down from 1.2% ($24.1 million) in 2024 | UN Comtrade Database: US imports of HS 6202 by partner, 2024 and 2025 (US Census Bureau customs data) |
| US imports of women's and girls' woven coats of wool or fine animal hair (HS 6202.20), share of import value by origin, 2025 (calculated) | Italy 32.6% ($75.9 million); China 14.1% ($32.9 million); Vietnam 11.4% ($26.4 million); five CAFTA-DR members combined 2.9% (Guatemala 2.2%); Mexico 0.16% ($0.37 million); total $233.0 million | UN Comtrade Database: US imports of HS 620220 by partner, 2025 (US Census Bureau customs data) |
| USMCA partners' share of all US apparel imports (HS 61+62), January-April 2026 | 3.4%, of which Mexico 2.8% (USMCA share was 3.2% in January-April 2025) | Sheng Lu, FASH455 (University of Delaware), Patterns of U.S. Apparel Imports (updated June 2026) |
| Western Hemisphere share of all US apparel imports (HS 61+62), April 2026 | 15.7% (15.8% in April 2025), including 13.7% from CAFTA-DR and USMCA members | Sheng Lu, FASH455 (University of Delaware), Patterns of U.S. Apparel Imports (updated June 2026) |
| Change in US apparel import value from Mexico and CAFTA-DR, October 2025 (all apparel, HS 61+62) | Mexico -8.5% and CAFTA-DR -15.3% in value, while their shares rose (Mexico 3.1% to 3.5%; CAFTA-DR 9.1% to 9.5%) | Sheng Lu, FASH455 (University of Delaware), Patterns of U.S. Apparel Imports (updated January 2026) |
| Shares of US apparel imports by supplier group, 2019 vs 2023 | China 30% to 21%; Bangladesh, India, Sri Lanka and Vietnam combined 30% to 35%; nearshore suppliers (all of North and South America) flat at 17% | McKinsey & Company, Is nearshoring in fashion? (Week in Charts, June 2024; data from Eurostat and the US International Trade Administration) |
| Mexico textile and apparel exports to all markets, full year 2025 | $7.66 billion, down 15% from 2024; 92% ($7.06 billion) went to the United States | CANAINTEX (Mexico's national textile industry chamber), Informacion Estadistica (statistical bulletin, May 2026, data to end-2025) |
Scope note: the first three rows are coat-specific US import records (HS 6202 and HS 6202.20); the next four cover all apparel (HS 61+62); the last row is Mexico's textile and apparel exports to every market. Where coat-specific and all-apparel shares differ, the difference is scope, not a data conflict.
In 2026 the country of assembly matters less than whether the coat qualifies. A Mexican or Central American coat that meets its origin rule enters duty-free and sits outside the Section 301 duties in force since 24 July 2026. The same coat made from non-qualifying fabric pays the General rate plus 10% (Mexico, El Salvador, Guatemala and Honduras) or 12.5% (Costa Rica, the Dominican Republic and Nicaragua).
The Section 301 action replaced the 10% Section 122 surcharge, which applied from 24 February 2026 and expired at 12:01 a.m. on 24 July 2026. Legal challenges to the Section 301 action were filed at the Court of International Trade in August 2026 (secondary reports) and were undecided as of 14 September 2026.
For wool, the yarn-forward rule is the hard part: the yarn, the fabric and the cutting and sewing all have to be regional. USMCA allows non-originating fibres and yarns up to 10% of the good's total weight, and its tariff preference level (TPL) provisions let visible lining fabric be of any origin for limited quantities. CAFTA-DR relaxes only the yarn, allowing wool yarn from outside the region.
Policy risk now runs on both sides of the border. USMCA stays in force but faces joint reviews every year after the United States did not agree to renew it in its current form on 1 July 2026, and Mexico has raised duties to 5% to 50% on 1,463 tariff lines for imports from non-FTA countries such as China.
Mexico's 2026 tariff increase reaches 1,463 tariff lines, including 418 textile lines, but spares goods of USMCA origin.
Reading of Foley & Lardner's analysis of the DOF decree of 29 December 2025
| Metric | Value | Source |
|---|---|---|
| USMCA rule of origin for textiles and apparel: yarn-forward | The yarn, the weaving or knitting of the fabric, and the cutting and sewing of the garment must all take place in one or more USMCA countries for the garment to originate | U.S. Customs and Border Protection (CBP), NAFTA: A Guide to Customs Procedures, Textiles and Apparel provisions (last modified February 2025) |
| USMCA origin flexibilities relevant to coats: de minimis and visible lining | Non-originating fibres and yarns allowed up to 10% of the good's total weight (elastomeric content capped at 7%); under the Annex 6-A tariff preference level (TPL) provisions for Chapter 61 and 62 goods, visible lining fabric may be of any origin | Office of the United States Trade Representative (USTR), USMCA Chapter 6 (Textile and Apparel Goods), Article 6.1 and Annex 6-A, Section C (treaty text, 2020) |
| CAFTA-DR origin exception for wool apparel | Wool yarn used in qualifying textile and apparel goods may come from outside the region; CAFTA-DR wool apparel may also use Mexican yarn and fabric under a cumulation cap of 1 million SME a year within a 100 million SME overall ceiling | U.S. Department of Commerce, International Trade Administration (OTEXA), Summary of CAFTA-DR FTA Textiles (trade.gov) |
| Section 122 temporary import surcharge: rate, dates and status | 10% ad valorem from 24 February 2026 for 150 days; expired at 12:01 a.m. on 24 July 2026, with no extending Act of Congress | Executive Office of the President, Proclamation 11012, Imposing a Temporary Import Surcharge (Federal Register, 25 February 2026) |
| Section 301 additional duties in force since 24 July 2026 (action on 60 economies following forced-labour investigations): rates and exemptions | 10% on goods of Mexico, El Salvador, Guatemala and Honduras (among 17 economies at 10%); 12.5% on other investigated economies including Costa Rica, the Dominican Republic and Nicaragua. Not applied to Mexican goods entered duty-free under USMCA, or to CAFTA-DR textile and apparel goods entered duty-free under CAFTA-DR | Office of the United States Trade Representative (USTR), Notice of Actions in Section 301 Investigations of 60 Economies (91 FR 47317, 28 July 2026) |
| USMCA six-year joint review outcome (1 July 2026) | The United States did not agree to renew USMCA in its current form; the Agreement stays in force, joint reviews now take place every year, and without a unanimous extension the term ends on 1 July 2036 | Office of the United States Trade Representative (USTR), Ambassador Greer's Statement on the USMCA Joint Review (1 July 2026); USMCA Chapter 34, Article 34.7 |
| Mexico's import tariff increase on goods from countries without a trade agreement with Mexico (in force 1 January 2026) | 1,463 tariff lines (about 12% of Mexico's tariff schedule) at rates of 5% to 50%; textiles are about 28% of the lines (418) and clothing about 21% (308) | Foley & Lardner LLP, Mexican January 2026 Tariff Tsunami: Maquilas Aren't Immune (29 December 2025), analysing the DOF decree of 29 December 2025 |
As of 14 September 2026, the Section 122 surcharge has expired (since 24 July 2026), the Section 301 action that replaced it is in force while legal challenges filed in August 2026 are pending, Mexico's non-FTA tariff increase is in force, and USMCA remains in force subject to annual joint reviews.
China produced 364,481 tonnes of greasy wool in 2024, about 21.5% of world output (calculated, provisional), and is the second-largest exporter of both carded and worsted woven wool fabric after Italy. The region that would assemble a nearshore coat barely weaves wool: the five CAFTA-DR members exported under $3,300 of carded fabric combined in 2024.
Fabric, not sewing, is the binding constraint for a nearshore wool coat. Guatemala bought 91.4% of its worsted wool fabric imports from Mexico and 89.2% of its carded imports from China, and Mexico bought 68.5% of its worsted imports from Italy (all calculated, 2024). Under a yarn-forward rule a coat cut from Italian or Chinese fabric does not originate, so it loses duty-free entry unless a TPL allocation or a CAFTA-DR short-supply listing applies.
Supply on the China side is deep and, by one account, underused. Keqiao's China Textile City recorded RMB 400.99 billion in market transactions in 2024 across all textiles, and a China Wool Textile Association survey relayed by trade press (widely reported but original source unverified) found fewer than 40% of mills running at around 80% of capacity.
Visible lining is the one coat component singled out in USMCA's TPL provisions, so the lining line of the BOM deserves the same origin check as the shell. The fabric options themselves are covered in the guide to lining and interlining choices for structured coats.
China shears more greasy wool than any other country: about 21.5% of world output in 2024 (calculated).
Reading of FAOSTAT production data (2024, provisional)
| Metric | Value | Source |
|---|---|---|
| China's greasy wool production and share of world output, 2024 (share calculated) | 364,481 tonnes, about 21.5% of world output of 1,695,974 tonnes | FAOSTAT Production, Crops and Livestock Products, item 987 shorn wool greasy (release of 23 December 2025) |
| Australia and New Zealand greasy wool production, 2023 and 2024 | Australia 281,000 tonnes in 2024 (318,000 in 2023); New Zealand 124,951 tonnes in 2024 (131,182 in 2023): the second- and third-largest producers | FAOSTAT Production, Crops and Livestock Products, item 987 shorn wool greasy (release of 23 December 2025) |
| Leading exporters of woven wool fabric, 2024: carded (HS 5111) and worsted (HS 5112) | Italy $376.2 million carded and $756.6 million worsted; China $100.0 million carded and $190.0 million worsted, second in both; the five CAFTA-DR members exported under $3,300 of carded fabric combined, and Guatemala $212,411 of worsted | UN Comtrade Database: exports of HS 5111 and HS 5112 by reporter, 2024 |
| Where nearshore coat makers buy woven wool fabric, 2024 (import-source shares calculated) | Guatemala bought 91.4% of its worsted wool fabric imports ($10.4 million of $11.3 million) from Mexico and 89.2% of its carded imports ($2.7 million of $3.1 million) from China; Mexico bought 68.5% of its worsted imports ($7.8 million of $11.3 million) from Italy, while exporting $28.1 million of wool fabric in total, more than the $14.3 million it imported | UN Comtrade Database: Guatemala and Mexico imports of HS 5111 and HS 5112 by partner, 2024 |
| China Textile City (Keqiao, Zhejiang) market transaction volume, 2024 | RMB 400.99 billion, up 11.09% year on year and above RMB 400 billion for the first time | China National Textile and Apparel Council (CNTAC), 2024 China Textile City transaction volume breaks RMB 400 billion (CNTAC, 6 January 2025) |
| Capacity utilisation at Chinese wool textile mills (China Wool Textile Association survey) | Fewer than 40% of mills running at around 80% of capacity; many mills report utilisation below 50% | Kohan Textile Journal (relaying a China Wool Textile Association survey), China's Wool Industry Struggles to Regain Its Footing (4 March 2026) |
| CAFTA-DR short-supply process for fibres, yarns and fabrics not available in the region | Fibres, yarns or fabrics determined not commercially available in the United States or the CAFTA-DR region can be sourced from third countries for qualifying goods; items are added to or removed from the Annex 3.25 short-supply list by petition | U.S. Department of Commerce, International Trade Administration (OTEXA), Summary of CAFTA-DR FTA Textiles (trade.gov) |
Raw wool tonnage measures fibre supply, not fabric capacity; the fabric trade rows are the direct evidence on coat-weight fabric. The mill-utilisation row is Tier 3-flagged and carries its qualifier in text.
Mexico's general daily minimum wage rose 13.0% for 2026, to MXN 315.04, and Zhejiang's Tier 1 monthly minimum rose 6.8%, to RMB 2,660 (both calculated). Jiaxing is set at Zhejiang's Tier 2, RMB 2,430 per month. The floors are set per day in pesos and per month in yuan, and neither is actual factory pay, so they cannot settle the cost question on their own.
Capacity is the clearer signal. Mexico's textile and apparel GDP was 15% below its Q3 2019 level in Q4 2025, apparel making was 27% below its Q2 2019 level, and formal employment in the sector is about 341,000 (calculated), against 444,000 in March 2020.
A brand moving premium coats there is entering a sector the government is actively trying to rebuild, with up to MXN 120 billion in credit and a stated target, not a forecast, of recovering 50,000 jobs. Wages are one line among many in a coat's price, and the line-by-line coat cost breakdown sets labour alongside shell fabric, lining, interlining, trims and fixed costs.
Mexico put up to MXN 120 billion of credit behind its textile and footwear sector in November 2025, aiming to win back 50,000 jobs.
Reading of Mexico's Secretaria de Economia
| Metric | Value | Source |
|---|---|---|
| Mexico daily minimum wages, 2026 | General zone MXN 315.04 per day (MXN 278.80 in 2025); Northern Border Free Zone MXN 440.87 per day (MXN 419.88 in 2025), effective 1 January 2026 | CONASAMI (Mexico's National Minimum Wage Commission), Incremento a los Salarios Minimos para 2026 (CONASAMI notice, 3 December 2025) |
| Zhejiang province monthly minimum wage tiers, 2026, and Jiaxing's tier | Tier 1 RMB 2,660, Tier 2 RMB 2,430 and Tier 3 RMB 2,180 per month (hourly RMB 25, 23 and 21), effective 1 January 2026; Jiaxing is set at Tier 2, RMB 2,430 per month | Zhejiang Provincial People's Government, Notice on Adjusting the Provincial Minimum Wage Standards (Zhe Zheng Fa [2025] No. 23, 26 December 2025) |
| Minimum wage increase from 2025 to 2026, Mexico general zone and Zhejiang Tier 1 (calculated) | Mexico +13.0% (MXN 278.80 to MXN 315.04 per day); Zhejiang Tier 1 +6.8% (RMB 2,490 to RMB 2,660 per month) | Calculated from CONASAMI and Zhejiang Provincial People's Government notices: CONASAMI 2026 minimum wage notice; Zhejiang notices Zhe Zheng Fa [2025] No. 23 and [2024] No. 3 |
| Formal employment in Mexico's textile and apparel industry, 2025-2026 (calculated) | About 341,000 formal jobs, of which 225,000 (66%) are in apparel making (confeccion) | CANAINTEX (Mexico's national textile industry chamber), Informacion Estadistica (statistical bulletin, May 2026) |
| Mexico textile and apparel industry GDP against its pre-pandemic level, Q4 2025 | 15% below the Q3 2019 level; apparel making (confeccion) 27% below its Q2 2019 level | CANAINTEX (Mexico's national textile industry chamber), Informacion Estadistica (statistical bulletin, May 2026) |
| Mexico textile and apparel industry share of manufacturing GDP, Q4 2025 | MXN 91.165 billion, 1.75% of manufacturing GDP; apparel making (SCIAN 315) MXN 50.89 billion of that | CANAINTEX (Mexico's national textile industry chamber), Informacion Estadistica (statistical bulletin, May 2026) |
| Mexico's textile and footwear sector support plan, announced 18 November 2025 | Up to MXN 120 billion in credit through BBVA Mexico and Nacional Financiera, with a stated goal of recovering 50,000 jobs | Secretaria de Economia (Mexico), Remarks by Economy Secretary Marcelo Ebrard at the Plan de Impulso al Sector Textil y de Calzado event (18 November 2025) |
| Employment in Mexico's textile and footwear sector (broad definition), 2025 | More than 1.3 million jobs | BBVA Mexico and the Secretaria de Economia support the textile and footwear sector (press release, 18 November 2025) |
Minimum wages are legal floors, not average factory wages, and no verified exchange rate is used in this article. The 341,000 and 1.3 million employment figures cover different scopes and should not be compared directly.
Ocean freight from China to the US West Coast took 37.6 days in the week to 10 August 2026, and the Freightos Baltic Index showed $7,765 per FEU to the West Coast on 14 September 2026. Speed is the nearshore advantage buyers still recognise, and it is shrinking.
In the 2026 USFIA benchmarking survey, US domestic, Mexican and CAFTA-DR suppliers remained the top performers on speed to market, but their advantage over leading Asian countries narrowed. Western Hemisphere suppliers were also rated lower risk on labour and environmental compliance, and more than 65% of respondents named access to duty-free benefits among the most important incentives to source there.
China holds the top scores on the two criteria that weigh most on a small premium coat line: vertical integration at 4.8 and minimum order quantity at 4.0, on a 1-5 scale. The survey covered 30 large US fashion companies, so the ratings describe large-buyer experience rather than small-brand terms. No measured Mexico-to-US truck transit time was verified for this article, so none is quoted.
A five-week ocean leg matters most for replenishment styles; for a pre-booked seasonal wool programme, fabric and order minimums usually decide more. The full calendar from sampling to delivery is covered in the guide to planning coat production lead times.
Ocean freight from China to the US West Coast still takes more than five weeks: 37.6 days in August 2026.
Reading of Flexport's Ocean Timeliness Indicator
| Metric | Value | Source |
|---|---|---|
| How US fashion sourcing executives rate Mexican and CAFTA-DR suppliers, 2026 (qualitative) | US domestic, Mexican and CAFTA-DR suppliers remained the top performers on speed to market, but their advantage over leading Asian countries narrowed; Western Hemisphere suppliers (excluding Haiti) were rated lower risk on labour and environmental compliance; relatively higher sourcing costs and limited flexibility and agility remained their weaknesses | United States Fashion Industry Association (USFIA), 2026 Fashion Industry Benchmarking Study (with the University of Delaware) |
| China's supplier ratings in the 2026 USFIA benchmarking survey (1 = lowest, 5 = highest) | Vertical integration 4.8 (highest of any country); sourcing cost 4.3 (tied with Bangladesh, up from 3.5 in 2025); minimum order quantity 4.0 (highest); flexibility and agility 4.0 (Vietnam 3.6) | United States Fashion Industry Association (USFIA), 2026 Fashion Industry Benchmarking Study (with the University of Delaware) |
| Top incentive for sourcing from CAFTA-DR members and Mexico, 2026 | More than 65% of respondents named access to duty-free benefits among the most important incentives | United States Fashion Industry Association (USFIA), 2026 Fashion Industry Benchmarking Study (with the University of Delaware) |
| Ocean transit time, China to US West Coast (Flexport Ocean Timeliness Indicator) | 37.6 days in the week to 10 August 2026, up from 36.5 days the week before | Flexport Ocean Timeliness Indicator (week to 10 August 2026) |
| Container spot rates, China to North America (Freightos Baltic Index), as displayed 14 September 2026 | West Coast (FBX01) $7,765 per FEU; East Coast (FBX03) $9,724 per FEU | Freightos Baltic Index FBX01 and FBX03 |
The USFIA survey covered 30 large US fashion companies (about 80% with 1,000 or more employees), so its ratings reflect large-buyer experience rather than small-brand terms. Freight rates are point-in-time values.
Origin qualification is the biggest swing in the landed cost of a wool coat on the verified 2026 duty stacks. At a common declared value of $48.73 per coat, a USMCA-qualifying Mexican coat carries $0, a non-qualifying Mexican coat about $12.98 and a Chinese coat about $11.83, including the 7.5% Section 301 List 4A duty (all illustrative and calculated).
The China case is 16.3% General duty ($7,942.99) + 7.5% List 4A duty ($3,654.75) + 0.3464% MPF ($168.80) + 0.125% HMF ($60.91) on a $48,730 declared value for 1,000 coats, or $11,827.45. The non-qualifying Mexican case replaces List 4A with the 10% Section 301 duty ($4,873.00) and has no HMF because the coats cross by truck, giving $12,984.79. The legal background of the Section 301 duty on Mexican goods is in section 2.
Both cases leave out the same 41 cents/kg weight-based duty, so the $1,157.34 gap between them (calculated) does not depend on coat weight. Freight, insurance and brokerage are left out of all three cases.
The $48.73 figure is the 2025 average declared customs value of Chinese wool coats across every price tier, not the price of a premium coat. A premium coat's ad valorem charges scale up with its value, while the MPF stops at $651.50 per entry and its $33.58 minimum applies only to entries below about $9,694 (calculated as 33.58 / 0.003464).
Origin qualification is worth about $12.98 per coat at a $48.73 declared value, more than the $11.83 a Chinese coat carries on its full 2026 duty stack.
Reading of the section 6 calculation
| Charge on 1,000 women's wool coats, $48,730 declared value (illustrative, calculated) | China-origin, by sea | USMCA-qualifying Mexican, by truck | Non-qualifying Mexican, by truck |
|---|---|---|---|
| General-rate ad valorem duty (16.3% x $48,730) | $7,942.99 | $0 (Special rate Free) | $7,942.99 |
| Additional duty | $3,654.75 (Section 301 List 4A, 7.5% x $48,730) | $0 | $4,873.00 (Section 301, 10% x $48,730) |
| Merchandise Processing Fee (0.3464% x $48,730) | $168.80 | $0 (exempt under 19 U.S.C. 58c) | $168.80 |
| Harbor Maintenance Fee (0.125% x $48,730, vessel cargo only) | $60.91 | $0 (truck) | $0 (truck) |
| Weight-based duty (41 cents/kg) | Excluded (no verified coat weight) | $0 (Special rate Free) | Excluded (no verified coat weight) |
| Total | $11,827.45 | $0 | $12,984.79 |
| Per coat and share of declared value | About $11.83 (24.3%) | $0 | About $12.98 (26.6%) |
| Metric | Value | Source |
|---|---|---|
| US duty rates for women's and girls' wool overcoats, HTS 6202.20.11 (2026) | General (MFN) rate 41 cents/kg + 16.3%; Special rate Free for USMCA-originating goods (symbol S) and other listed partners; Column 2 rate 46.3 cents/kg + 58.5% | U.S. International Trade Commission (USITC), Harmonized Tariff Schedule of the United States, Revision 18 (2026), heading 6202.20.11 |
| China-specific additional duties on women's wool overcoats, HTS 6202.20.11, as of 14 September 2026 | Section 301 List 4A (heading 9903.88.15): +7.5% ad valorem on top of the General rate, with no product exclusion in effect for this line; the IEEPA duties on Chinese goods (headings 9903.01.20, 9903.01.24 and 9903.01.25) ended on 20 February 2026 under Executive Order 14389 | U.S. International Trade Commission (USITC), Harmonized Tariff Schedule of the United States, Revision 18 (2026), Chapter 99, U.S. Notes 20(r) and 20(s)(i); Executive Order 14389, Ending Certain Tariff Actions (91 FR 9437, 25 February 2026) |
| CBP entry fees: Merchandise Processing Fee (formal entries, fiscal year 2026) and Harbor Maintenance Fee (ocean cargo) | MPF 0.3464% of entered value, minimum $33.58 and maximum $651.50 per entry (1 October 2025 to 30 September 2026); HMF 0.125% of the value of commercial cargo loaded on or unloaded from a commercial vessel | U.S. Customs and Border Protection (CBP), CBP Dec. 25-10, Customs User Fees To Be Adjusted for Inflation in Fiscal Year 2026 (90 FR 34665, 23 July 2025); 19 CFR 24.24, Harbor maintenance fee (eCFR, version of 10 September 2026) |
| Merchandise Processing Fee exemption for USMCA-qualifying goods | No MPF may be charged on goods that qualify as USMCA originating goods or for duty-free treatment under USMCA Annex 6-A | 19 U.S.C. 58c(b)(10), Consolidated Omnibus Budget Reconciliation Act of 1985, as amended |
| Average declared customs value per coat, US imports of women's wool coats (HS 6202.20), by origin, 2024 and 2025 (calculated) | 2025: China $48.73, Italy $156.91, Mexico $19.84; 2024: China $48.92, Italy $195.27, Mexico $19.74 | UN Comtrade Database: US imports of HS 620220 by partner, value and item count, 2024 and 2025 |
| Illustrative duty and fees on 1,000 China-origin women's wool coats shipped by sea (calculated) | $11,827.45 before the weight-based duty (about $11.83 per coat, 24.3% of declared value): General-rate duty $7,942.99 + Section 301 List 4A duty at 7.5% $3,654.75 + MPF $168.80 + HMF $60.91 on $48,730 declared value, plus $0.41 per kg of coat weight | Calculated from USITC HTS (including Chapter 99) and CBP fee rates: Section 6 calculation using HTS 6202.20.11 (Revision 18), HTS Chapter 99 U.S. Notes 20(r) and 20(s)(i), CBP Dec. 25-10 and 19 CFR 24.24 |
| Illustrative duty and fees on 1,000 USMCA-qualifying Mexican women's wool coats trucked across the border (calculated) | $0: Special duty rate Free, no MPF, no Section 301 duty and no HMF on truck cargo | Calculated from USITC HTS, 19 U.S.C. 58c, the USTR Section 301 notice and 19 CFR 24.24: Section 6 calculation using HTS 6202.20.11 Special column, 19 U.S.C. 58c(b)(10), 91 FR 47317 and 19 CFR 24.24 |
| Illustrative duty and fees on 1,000 non-qualifying Mexican women's wool coats trucked across the border (calculated) | $12,984.79 before the weight-based duty (about $12.98 per coat, 26.6% of declared value): General-rate duty $7,942.99 + Section 301 duty at 10% $4,873.00 + MPF $168.80 on $48,730 declared value, plus $0.41 per kg of coat weight | Calculated from USITC HTS, the USTR Section 301 notice and CBP fee rates: Section 6 calculation using HTS 6202.20.11 General column, 91 FR 47317 and CBP Dec. 25-10 |
All three cases use the same $48,730 declared value (1,000 coats at the 2025 China average of $48.73). The China case includes every China-specific duty layer checked for this tariff line as of 14 September 2026, which is Section 301 List 4A at 7.5%: the IEEPA China duties ended on 20 February 2026, Section 122 expired on 24 July 2026, and the July 2026 Section 301 action does not cover China. The Chinese and non-qualifying Mexican cases leave out the same 41 cents/kg weight-based duty because no verified coat weight was available, and all three cases leave out freight, insurance and brokerage. MPF minimum threshold calculated as 33.58 / 0.003464 = 9,694.
Canada Goose made 65% of its fiscal 2026 units in North America, 34% in Europe and 1% in Asia, so production outside Asia is workable for premium outerwear at scale. Its product mix, mostly down-filled outerwear, differs from tailored wool coats.
Qualification is routine for apparel in general: 76.1% of US apparel imports from CAFTA-DR claimed duty-free treatment under the agreement in January-October 2025, and a qualifying coat avoids duty and the MPF entirely. Wool outerwear is where the case is thinnest. The region imports its wool fabric, few US companies plan to expand Western Hemisphere sourcing of outerwear, and China holds the top buyer ratings on order minimums and vertical integration.
The evidence supports splitting a coat range by fabric and replenishment need rather than moving it wholesale. Only 21.1% of US fashion companies plan to source from more countries through 2027, down from 58.8%, so dual-sourcing in practice usually means splitting volume across existing suppliers. Brands selling mainly into Europe face a different set of options, set out in the EU-facing comparison of China, Portugal and Turkey.
Canada Goose made 65% of its fiscal 2026 units in North America and 1% in Asia.
Reading of Canada Goose's fiscal 2026 Form 20-F
| Metric | Value | Source |
|---|---|---|
| Canada Goose units manufactured by region, fiscal 2026 (owned and contract manufacturers, all product categories) | North America 65%, Europe 34%, Asia 1% | Canada Goose Holdings Inc. Form 20-F for the fiscal year ended 29 March 2026 (Item 4, Manufacturing) |
| Canada Goose owned manufacturing facilities, fiscal 2025 and 2026 | 6 at 29 March 2026 (5 in Canada, 1 in Romania), down from 8 at 30 March 2025 (7 in Canada, 1 in Romania) | Canada Goose Holdings Inc. Form 20-F, fiscal 2026 and fiscal 2025 (Item 4, Manufacturing) |
| Share of Canada Goose down-filled outerwear made in its own facilities, fiscal 2025 and 2026 | Over 80% in fiscal 2026, down from over 90% in fiscal 2025; nearly all down-filled outerwear was made in Canada in both years | Canada Goose Holdings Inc. Form 20-F, fiscal 2026 and fiscal 2025 (Item 4, Manufacturing) |
| What US fashion companies source from Mexico and plan for the Western Hemisphere, 2026 | Leading categories from Mexico: T-shirts (47% of respondents) and bottoms (20%); few respondents plan to expand Western Hemisphere sourcing of higher-value or more complex products such as dresses, outerwear and sweaters | United States Fashion Industry Association (USFIA), 2026 Fashion Industry Benchmarking Study (with the University of Delaware) |
| US fashion companies sourcing apparel from CAFTA-DR members, 2025 and 2026 | 76% of respondents sourced there in 2026 (64% in 2025); 24% sourced more than 10% of their apparel there (14% in 2025) | United States Fashion Industry Association (USFIA), 2026 Fashion Industry Benchmarking Study (with the University of Delaware) |
| US fashion companies planning to source from more countries through 2027 | 21.1%, down from 58.8% in the 2025 survey | United States Fashion Industry Association (USFIA), 2026 Fashion Industry Benchmarking Study (with the University of Delaware) |
| Share of US apparel imports from CAFTA-DR claiming duty-free treatment under the agreement, January-October 2025 | 76.1%, up from 72.9% in January-October 2024 | Sheng Lu, FASH455 (University of Delaware), Patterns of U.S. Apparel Imports (updated January 2026) |
Canada Goose is cited only as a factual, company-reported sourcing model; its product mix (mostly down-filled outerwear) differs from tailored wool coats. With only 21.1% of companies planning to add countries, dual-sourcing in practice usually means splitting volume across existing suppliers.
| Question | Why it matters | Evidence |
|---|---|---|
| Where is the shell fabric woven, and where was its yarn spun? | Under yarn-forward, fabric origin decides whether the coat qualifies. | Sections 2 and 3 |
| Will the coat claim USMCA or CAFTA-DR preference, and who prepares the origin documentation? | Qualification is the difference between $0 and about $12.98 per coat in the section 6 example. | Sections 2 and 6 |
| Does any component, such as visible lining, rely on a tariff preference level or a short-supply listing? | These provisions are limited and item-specific. | Sections 2 and 3 |
| What share of the factory's current output is outerwear rather than T-shirts and bottoms? | US coat imports from the region are small, and US buyers mainly source basics there. | Sections 1 and 7 |
| What minimum order per style and colour applies, and how does it compare with an Asian quote? | China holds the top USFIA rating on minimum order quantities. | Section 5 |
| What is the measured door-to-door lead time for a reorder? | No measured Mexico-to-US truck transit figure is published in the sources used here; ask for shipment records. | Section 5 |
| How would a change to USMCA terms after an annual review affect the price? | USMCA now faces yearly joint reviews. | Section 2 |
The questions add no new figures; each points back to evidence in sections 1 to 7.
For a China-side reference point, JX Apparel Group, the Jiaxing women's outerwear factory that publishes this guide, states a minimum order of 200 pieces per style per colour, 7-10 working days for sampling and 15-25 days for bulk production after PP sample approval.
| Metric | Value | Source |
|---|---|---|
| USMCA partners' share of all US apparel imports (HS 61+62), January-April 2026 | 3.4%, of which Mexico 2.8% (USMCA share was 3.2% in January-April 2025) | Sheng Lu, FASH455 (University of Delaware), Patterns of U.S. Apparel Imports (updated June 2026) |
| Shares of US apparel imports by supplier group, 2019 vs 2023 | China 30% to 21%; Bangladesh, India, Sri Lanka and Vietnam combined 30% to 35%; nearshore suppliers (all of North and South America) flat at 17% | McKinsey & Company, Is nearshoring in fashion? (Week in Charts, June 2024; data from Eurostat and the US International Trade Administration) |
| Mexico textile and apparel exports to all markets, full year 2025 | $7.66 billion, down 15% from 2024; 92% ($7.06 billion) went to the United States | CANAINTEX (Mexico's national textile industry chamber), Informacion Estadistica (statistical bulletin, May 2026, data to end-2025) |
| USMCA rule of origin for textiles and apparel: yarn-forward | The yarn, the weaving or knitting of the fabric, and the cutting and sewing of the garment must all take place in one or more USMCA countries for the garment to originate | U.S. Customs and Border Protection (CBP), NAFTA: A Guide to Customs Procedures, Textiles and Apparel provisions (last modified February 2025) |
| CAFTA-DR origin exception for wool apparel | Wool yarn used in qualifying textile and apparel goods may come from outside the region; CAFTA-DR wool apparel may also use Mexican yarn and fabric under a cumulation cap of 1 million SME a year within a 100 million SME overall ceiling | U.S. Department of Commerce, International Trade Administration (OTEXA), Summary of CAFTA-DR FTA Textiles (trade.gov) |
| Section 122 temporary import surcharge: rate, dates and status | 10% ad valorem from 24 February 2026 for 150 days; expired at 12:01 a.m. on 24 July 2026, with no extending Act of Congress | Executive Office of the President, Proclamation 11012, Imposing a Temporary Import Surcharge (Federal Register, 25 February 2026) |
| Section 301 additional duties in force since 24 July 2026 (action on 60 economies following forced-labour investigations): rates and exemptions | 10% on goods of Mexico, El Salvador, Guatemala and Honduras (among 17 economies at 10%); 12.5% on other investigated economies including Costa Rica, the Dominican Republic and Nicaragua. Not applied to Mexican goods entered duty-free under USMCA, or to CAFTA-DR textile and apparel goods entered duty-free under CAFTA-DR | Office of the United States Trade Representative (USTR), Notice of Actions in Section 301 Investigations of 60 Economies (91 FR 47317, 28 July 2026) |
| USMCA six-year joint review outcome (1 July 2026) | The United States did not agree to renew USMCA in its current form; the Agreement stays in force, joint reviews now take place every year, and without a unanimous extension the term ends on 1 July 2036 | Office of the United States Trade Representative (USTR), Ambassador Greer's Statement on the USMCA Joint Review (1 July 2026); USMCA Chapter 34, Article 34.7 |
| Mexico's import tariff increase on goods from countries without a trade agreement with Mexico (in force 1 January 2026) | 1,463 tariff lines (about 12% of Mexico's tariff schedule) at rates of 5% to 50%; textiles are about 28% of the lines (418) and clothing about 21% (308) | Foley & Lardner LLP, Mexican January 2026 Tariff Tsunami: Maquilas Aren't Immune (29 December 2025), analysing the DOF decree of 29 December 2025 |
| China's greasy wool production and share of world output, 2024 (share calculated) | 364,481 tonnes, about 21.5% of world output of 1,695,974 tonnes | FAOSTAT Production, Crops and Livestock Products, item 987 shorn wool greasy (release of 23 December 2025) |
| China Textile City (Keqiao, Zhejiang) market transaction volume, 2024 | RMB 400.99 billion, up 11.09% year on year and above RMB 400 billion for the first time | China National Textile and Apparel Council (CNTAC), 2024 China Textile City transaction volume breaks RMB 400 billion (CNTAC, 6 January 2025) |
| Mexico daily minimum wages, 2026 | General zone MXN 315.04 per day (MXN 278.80 in 2025); Northern Border Free Zone MXN 440.87 per day (MXN 419.88 in 2025), effective 1 January 2026 | CONASAMI (Mexico's National Minimum Wage Commission), Incremento a los Salarios Minimos para 2026 (CONASAMI notice, 3 December 2025) |
| Zhejiang province monthly minimum wage tiers, 2026, and Jiaxing's tier | Tier 1 RMB 2,660, Tier 2 RMB 2,430 and Tier 3 RMB 2,180 per month (hourly RMB 25, 23 and 21), effective 1 January 2026; Jiaxing is set at Tier 2, RMB 2,430 per month | Zhejiang Provincial People's Government, Notice on Adjusting the Provincial Minimum Wage Standards (Zhe Zheng Fa [2025] No. 23, 26 December 2025) |
| China's supplier ratings in the 2026 USFIA benchmarking survey (1 = lowest, 5 = highest) | Vertical integration 4.8 (highest of any country); sourcing cost 4.3 (tied with Bangladesh, up from 3.5 in 2025); minimum order quantity 4.0 (highest); flexibility and agility 4.0 (Vietnam 3.6) | United States Fashion Industry Association (USFIA), 2026 Fashion Industry Benchmarking Study (with the University of Delaware) |
| Ocean transit time, China to US West Coast (Flexport Ocean Timeliness Indicator) | 37.6 days in the week to 10 August 2026, up from 36.5 days the week before | Flexport Ocean Timeliness Indicator (week to 10 August 2026) |
| US duty rates for women's and girls' wool overcoats, HTS 6202.20.11 (2026) | General (MFN) rate 41 cents/kg + 16.3%; Special rate Free for USMCA-originating goods (symbol S) and other listed partners; Column 2 rate 46.3 cents/kg + 58.5% | U.S. International Trade Commission (USITC), Harmonized Tariff Schedule of the United States, Revision 18 (2026), heading 6202.20.11 |
| Merchandise Processing Fee exemption for USMCA-qualifying goods | No MPF may be charged on goods that qualify as USMCA originating goods or for duty-free treatment under USMCA Annex 6-A | 19 U.S.C. 58c(b)(10), Consolidated Omnibus Budget Reconciliation Act of 1985, as amended |
| Canada Goose units manufactured by region, fiscal 2026 (owned and contract manufacturers, all product categories) | North America 65%, Europe 34%, Asia 1% | Canada Goose Holdings Inc. Form 20-F for the fiscal year ended 29 March 2026 (Item 4, Manufacturing) |
This analysis aggregates 50 data points, each read on a primary page, legal text or dataset and checked on 14 September 2026. Coat-specific import figures are US customs values by HS code (HS 6202 and HS 6202.20); shares, unit values, year-on-year changes and the section 6 duty examples are calculated and labelled, with formulas shown. Tariff and origin rules come from the Harmonized Tariff Schedule (Revision 18, 2026), the USMCA and CAFTA-DR texts and US and Mexican government notices, with status as of 14 September 2026. All-apparel shares (HS 61+62) and coat-specific shares are kept apart and labelled by scope. One figure, the China Wool Textile Association capacity survey, rests on a single trade-press relay; it is Tier 3-flagged, carries its qualifier in the text and does not appear in Key Takeaways. Every calculated figure is labelled as calculated, and no projections are used.
Scope: HS 6202 = women's and girls' woven coats and jackets of all fibres; HS 6202.20 = those of wool or fine animal hair; HS 61+62 = all knit and woven apparel. The CAFTA-DR coat shares cover Guatemala, Honduras, El Salvador, the Dominican Republic and Nicaragua; Costa Rica is not included.
Primary sources (Tier 1)
Secondary source (Tier 3-flagged, qualified in the text)
Recency and status notes
Last updated: September 2026. Reviewed quarterly, and whenever US or Mexican tariff status changes. The oldest dated source is the USMCA Chapter 6 treaty text, in force since 1 July 2020 and cited as the legal text still in force.
Written by
Ray Wang
Women's outerwear manufacturing specialist with 13 years of experience producing wool, cashmere, and down coats for fashion brands across Europe and North America at JX Apparel Group in Jiaxing, China.
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