If you paused China activewear orders in the first half of 2026 to dodge the extra 10% tariff, the math is about to change. The Section 122 surcharge is scheduled to expire on 24 July 2026 — and for brands sourcing leggings, sports bras and technical wear, that quietly removes ten points of duty exposure almost overnight. Here is what is actually changing, how US duty really stacks on activewear, and why the landed-cost picture still favours a factory-direct partner.
This is general sourcing guidance as of July 2026, not customs or legal advice. Tariff measures are policy-dependent and change quickly — confirm current HTS rates with your broker, or request a live landed-cost quote.
What changes on 24 July 2026
The 10% Section 122 import surcharge on China-made goods was imposed on 24 February 2026. Under the Trade Act of 1974, a Section 122 balance-of-payments surcharge is capped at 150 days unless Congress passes legislation to continue it. That 150-day clock runs out around 24 July 2026, so absent Congressional action the surcharge lapses automatically.
When it lapses, the picture for a typical China-made garment looks like this:
- The 10% Section 122 surcharge disappears.
- The 7.5% Section 301 (List 4A) duty on apparel stays in force — it is a separate measure and is not affected.
- The MFN base duty stays — this varies by product (more on that below).
The practical effect: brands that shelved China programs in H1 2026 may see China landed cost drop by roughly ten points in the same week, narrowing the gap versus Vietnam and other alternatives for that window. It is worth watching closely — Congress could re-impose a surcharge up to the statutory maximum, so treat any relief as a window to lock in, not a permanent reset.
How US import duty stacks on activewear
Brands routinely under-estimate landed cost because they compare raw FOB prices across countries and forget that duty is layered. For China-made activewear the stack is built from up to three parts:
| Layer | What it is | Notes for activewear |
|---|---|---|
| MFN base duty | The standard HTS rate for the product | Varies a lot by classification. Synthetic-knit bottoms (many leggings) sit toward the higher end; confirm your exact HTS code |
| Section 301 (List 4A) | 7.5% on most apparel | In force; unaffected by the Section 122 expiry |
| Section 122 surcharge | 10% on China-made goods | Scheduled to expire ~24 July 2026 unless extended |
On top of duty, real landed cost also includes ocean or air freight (a per-unit cost that varies with volume and lane) and customs brokerage/entry fees per shipment. A useful rule of thumb practitioners use is that the delivered cost of China-made apparel lands somewhere around 1.8-2.5× the FOB price once duty, freight and brokerage are included — but your real multiplier depends on your HTS classification, order size and shipping mode, so use it only as a sanity check, not a quote.
The takeaway is not a single magic percentage — it is that you need the math done on your specific styles, not a headline number.
De minimis is gone — every shipment is now dutiable
There used to be a workaround: ship small parcels under the US $800 de minimis threshold and skip the duty. That door is closed. De minimis ended for China first (May 2025), then for all countries (August 2025 executive action), and the repeal of Section 321 has been made permanent (effective 1 July 2027, with the suspension already in force by regulation).
What that means in practice:
- Every import, regardless of value, now requires a formal customs entry and duty payment.
- The “ship it cheap under $800” arbitrage that some small brands relied on is dead.
- Splitting orders to dodge duty carries real penalties.
For a brand, this shifts the economics decisively toward consolidated, duty-paid bulk sourcing from a factory that can help with correct HTS classification and clean documentation — exactly what a factory-direct partner does, and exactly what gray-market parcel routes cannot.
What this means for your Q4 and 2027 sourcing
Two things follow for planning:
- If the Section 122 surcharge lapses on schedule, the second half of 2026 is a comparatively favourable window to lock in China production for holiday reorders and Spring/Summer 2027 ranges. With Chinese New Year 2027 falling on 6 February 2027, bulk purchase orders realistically need to land by late November / early December 2026 — so the planning decision is now, not later. (See our SS27 sourcing timeline thinking on lead times.)
- Incoterms are now a risk decision, not boilerplate. When rates can move by ten points mid-transit, who is the importer of record and who underwrites the duty matters. We cover this in DDP, DAP or FOB for China activewear in 2026.
The factory-direct offset
Tariffs are real, but they are only one line in the landed-cost equation — and a factory-direct group offsets part of the gap that a trading company or parcel route cannot:
- No middleman markup. You pay the maker’s price, not a broker’s margin on top of it. For our indicative category ranges, see how much activewear costs to manufacture.
- Correct classification and clean entry. We help structure compliant bulk shipments with the right HTS codes and documentation.
- Vertical, low-MOQ, fast. As a six-factory group knitting fabric to finished garment at MOQs from 200-300 pcs/style, we compete on total delivered cost, speed and quality — not just raw FOB. For the country-by-country picture, see our factory-direct vs trading company comparison.
Want the numbers on your styles? Send us your tech pack and target market and we will come back with a costing and an indicative landed-cost view for your program — private label included (private label activewear manufacturing).
