Made In USA manufacturing and logistics
Colombian Suppliers Face Earthquake Impacts, Tariff Woes (Wwd)
Summary: Colombian apparel suppliers at Sourcing at Magic in Las Vegas are navigating a double shock: a 7.4-magnitude earthquake that struck the country’s western textile and apparel heartland, killing over 200 and damaging factories in Cali, Pereira, and Manizales, and a fresh 12.5% Section 301 tariff imposed by the Trump administration. Exhibitors report halted production, infrastructure assessments, and a two-week expected downtime for at least one major mill. The tariffs, which replaced expiring 10% duties, are already eroding volume and new contract terms, with suppliers absorbing costs or sharing them with brands. A further Section 301 round could push some Colombian suppliers out of the U.S. market entirely, even as nearshoring demand and a new conservative government offer some hope for tariff relief.
Why it matters: For U.S. brands and sourcing teams, this signals potential supply disruptions and price pressure from a key nearshoring partner, while the tariff trajectory could reshape sourcing decisions away from Colombia toward duty-free peers like Peru and Mexico.
Context: Colombia’s apparel sector exports $265 million to the U.S., its largest market, and has been a nearshoring beneficiary post-pandemic. The new Section 301 duties, targeting 60 countries, place Colombia at a disadvantage versus FTA partners in the hemisphere.
"Colombian exhibitors at the Sourcing at Magic trade show in Las Vegas this week came with the intention of gaining a greater foothold in the American market. But on the first day." — WWD
Commentary: The earthquake compounds an already fragile operating environment: suppliers are assessing structural damage while absorbing tariff costs that erode their nearshoring value proposition. The 12.5% duty, layered on top of higher labor costs than Asia, forces brands to either share the burden or shift volume to duty-free competitors. With a second Section 301 investigation pending, the next few weeks are critical—if duties rise again, expect accelerated supplier exits and a re-routing of orders to Mexico and Central America. The new Colombian government’s alignment with U.S. policy is a wildcard, but trade talks are unlikely to move fast enough to offset immediate sourcing decisions.
Date: August 13, 2026 04:56 PM ET
URL: https://wwd.com/sourcing-journal/trade/sourcing-at-magic-colombia-suppliers-earthquake-impacts-tariffs-1239124116/
AI Sentiment Score: Negative (62%)
AI Credibility Score: 10.0/10 — High
Scores and text generated by AI analysis of the source article indicated.Post ID: a0ea8026