Jay Apparel Group expands operations in central america to navigate tariff crisis
Jay Apparel Group, a U.S.-based apparel company headquartered in New York, has announced a significant expansion into Central America. This strategic move is aimed at countering the impact of rising tariffs and supply chain disruptions by relocating and diversifying its manufacturing operations closer to the North American market.
In response to shifting trade dynamics and the global tariff crisis, Jay Apparel Group will establish new production facilities in Honduras and other key Central American locations. The decision comes amid growing pressure on apparel manufacturers to reduce lead times, manage costs, and maintain agility in sourcing.
“Central America offers an exceptional opportunity for nearshoring due to its proximity, favorable trade agreements, and growing textile infrastructure,” said Jay R. Kapadia, President of Jay Apparel Group. “This expansion will allow us to enhance flexibility, mitigate tariff exposure, and continue delivering value to our retail partners.”
The company’s operations in Central America will focus primarily on producing men’s woven sport shirts and other core product categories. The new facilities will take advantage of benefits provided under the Dominican Republic–Central America Free Trade Agreement (CAFTA-DR), enabling duty-free access to the U.S. market and encouraging investment in the region.
The expansion is projected to create hundreds of new jobs, support local economies, and reinforce Jay Apparel Group’s commitment to responsible sourcing and innovation. By reducing dependency on Asian manufacturing hubs, the company seeks to build a more resilient and responsive supply chain.
Industry analysts view this move as part of a broader trend among apparel brands reconsidering global sourcing strategies in light of economic volatility, transportation bottlenecks, and geopolitical uncertainties. Nearshoring to Central America is increasingly seen as a viable long-term strategy for North American apparel companies aiming to improve speed-to-market and reduce exposure to external shocks.
Jay Apparel Group’s investment is expected to set a precedent for other U.S. fashion and apparel manufacturers seeking sustainable solutions to the challenges of globalization. As the industry adapts, this expansion underscores the importance of regional partnerships and agile manufacturing in the future of fashion.
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