Jay Apparel Group specialises in men’s woven shirts. Credit: Vtmila/Shutterstock.

The full-service apparel company will concentrate on producing men’s woven sports shirts and other principal items in Honduras, among other critical locations in the region to mitigate the impact of increasing expenses and unpredictable trade regulations.

It plans to capitalise on the US’s Dominican Republic–Central America Free Trade Agreement (CAFTA-DR), which is designed to systematically eliminate the majority of tariffs, customs duties, and trade impediments on goods and services exchanged in Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the US.

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The strategic move aims to diversify Jay Apparel’s production bases and maintain a steady flow of goods to its retail clients across North America.

The initiative is part of the firm’s broader strategy to build a more flexible and resilient supply chain.

This expansion is anticipated to create employment opportunities, bolster regional economies, and align with Jay Apparel’s commitment to ethical sourcing practices and innovation within the clothing industry.

With this move, the group aims to position itself at the forefront of redefining sourcing tactics for the future while continuing its role in cost-effective apparel manufacturing.

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Jay Apparel Group president Jay Kapadia said: “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.”

On 2 April, US President Donald Trump introduced a series of reciprocal tariffs targeting up to 185 countries. These are now on a 90-day pause period for all nations except China.

A standard 10% tariff was imposed on a range of goods from numerous Latin American and Caribbean nations, with specific countries such as Guyana facing a 38% rate, Nicaragua 18%, and Venezuela 15%.

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