Jay Apparel is set to focus its production efforts on men’s woven sports shirts and other key products in Honduras, along with other strategic locations in the region, to navigate rising costs and unpredictable trade regulations.
The company aims to take advantage of the Dominican Republic–Central America Free Trade Agreement (CAFTA-DR), which seeks to gradually eliminate most tariffs, customs duties, and trade barriers on goods and services exchanged among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States.
This strategic decision intends to diversify Jay Apparel’s production capabilities and ensure a consistent supply of products to its retail partners throughout North America.
This initiative is part of a broader strategy to establish a more agile and resilient supply chain.
The expansion is expected to create job opportunities, enhance regional economies, and reinforce Jay Apparel’s commitment to ethical sourcing and innovation within the apparel sector.
Through this approach, the company aims to lead the way in redefining sourcing strategies for the future while maintaining its role in cost-effective apparel manufacturing. Jay Kapadia, president of Jay Apparel Group, stated, “Central America presents a unique opportunity for nearshoring due to its proximity, favorable trade agreements, and improving textile infrastructure.
“We believe this strategic investment will help us reduce lead times, enhance flexibility, and alleviate the pressures of ongoing tariffs.”
On April 2, U.S. President Donald Trump announced a series of reciprocal tariffs affecting up to 185 countries, which are now in a 90-day pause period for all countries except China.
A standard 10% tariff was applied to a range of goods from several Latin American and Caribbean nations, with specific rates such as 38% for Guyana, 18% for Nicaragua, and 15% for Venezuela.