US-based Jay Apparel Group has announced a strategic expansion into Central America to mitigate the impact of rising tariffs and trade uncertainties in the global textile industry. By diversifying its manufacturing operations, the company aims to strengthen supply chain resilience and ensure consistent delivery to its North American retail partners.
Jay R. Kapadia, President of Jay Apparel Group, stated, “Central America offers an exceptional opportunity for nearshoring due to its proximity, trade agreements, and growing textile infrastructure. We believe this strategic investment will allow us to reduce lead times, improve flexibility, and mitigate the impact of ongoing tariff pressures.”
The company will focus on producing men’s woven sports shirts and other core products in Honduras and other key regional hubs. This move leverages the benefits of the Dominican Republic–Central America Free Trade Agreement (CAFTA-DR), which eliminates most tariffs and trade barriers between the US and participating nations, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.
Beyond operational advantages, the expansion is expected to create employment opportunities and support local economies, aligning with Jay Apparel Group’s commitment to responsible sourcing and innovation. This strategic shift underscores the company’s leadership in adapting to evolving global trade dynamics while maintaining cost-effective, value-driven apparel production.
Rising global tariffs and trade volatility continue to disrupt the apparel industry, driving up costs and complicating supply chains for manufacturers worldwide. By expanding into Central America, Jay Apparel Group not only secures a competitive edge through nearshoring and CAFTA-DR benefits but also future-proofs its operations against escalating trade barriers.
This strategic shift enables faster turnaround times, cost efficiencies, and greater flexibility—key advantages in an unpredictable market. Moreover, the company reinforces its commitment to sustainability by prioritising responsible sourcing, ethical production, and local economic growth. As trade tensions reshape global supply chains, Jay Apparel’s proactive approach positions it as an industry leader in resilience, innovation, and sustainable apparel manufacturing.
