Tariffs Are Quietly Reshaping How U.S. Businesses Buy Branded Apparel

By Conor Smart · Published July 13, 2026, 10:30 a.m. ET

Higher import duties on clothing are changing how American businesses plan their fall apparel spending, and many are ordering in smaller, tighter batches to protect their budgets.

The pressure is not abstract. U.S. tariffs on imported apparel rose to roughly 35% in 2025, a sharp increase for a category that had grown used to low duties, according to trade researchers tracking where brands source their goods. Those costs travel down the supply chain and eventually reach the companies that buy branded polos, jackets and caps for their staff and events.

Consumers feel the same squeeze, and that shapes the wider mood heading into fall. In its 2026 back-to-class research, the National Retail Federation found that 78% of shoppers expect higher prices on back-to-school items this year, down only slightly from the 84% who said so in 2022. NRF also reported that about a third of shoppers had already begun buying by early June, the earliest start it has recorded since it first asked the question in 2018.

For businesses, the lesson is budget discipline. When every unit costs more, buying a year of inventory up front becomes a bet on sizes, headcount and turnover. That math is nudging more owners toward buying what they need when they need it, rather than committing to a large run before the season starts.

"Owners are watching every line item right now, and apparel is no exception," said Conor Smart, founder of Arklavo. "The question we hear most is how to outfit a team without locking up cash in boxes of shirts that may never get worn."

What changes when prices rise?

Arklavo, a self-funded custom apparel company founded in 2023 and rebranded in 2025, sets no order minimums, so a business can order one embroidered polo or a hundred. Across its recent orders, the company has seen more buyers split purchases into smaller waves timed to hiring and seasonal need. That approach trades the old bulk discount for control over cost and waste.

The production side makes the shift workable. In-house embroidery, direct-to-garment printing and heat press keep short runs affordable, so ordering ten jackets no longer carries the setup penalty it once did. Free U.S. shipping over $150 and a two-day production window give planners room to reorder as needs change instead of guessing months ahead.

None of this makes tariffs disappear. What it does is give business buyers a way to absorb rising costs without over-committing, an option that looks better every time an invoice lands higher than the last. Companies mapping out their fall plans can review styles and pricing across Arklavo's custom business apparel range before they decide on a number.