China vs. Pakistan: Apparel Import Tariffs & Landed Cost Comparison (2025)
As global trade continues to evolve, U.S. apparel importers must factor in more than just factory costs. With steep tariffs on Chinese goods and rising shipping costs, where you source your clothing matters more than ever.
In this guide, we compare China vs. Pakistan for apparel imports in 2025, focusing on tariffs, freight, production costs, and total landed cost. This comprehensive breakdown will help you make informed sourcing decisions while optimizing profit margins.
Why It Matters: Apparel Sourcing in a Post-Tariff World
Choosing between China and Pakistan isn’t just about price per unit. It’s about understanding:
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How tariffs affect final landed cost
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Differences in logistics and shipping timelines
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Variations in production efficiency and labor costs
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Compliance, sustainability, and risk mitigation
As apparel importers aim for supply chain diversification, this comparison offers critical insights for 2025 and beyond.
Key Components of Landed Cost
Landed cost includes all expenses incurred from factory to U.S. warehouse:
🔹 FOB Production Cost
🔹 U.S. Tariffs and Duties
🔹 Ocean or Air Freight
🔹 Port Fees & Customs
🔹 Documentation & Insurance
🔹 Inland Transport (Domestic)
Let’s break this down with side-by-side figures.
Table: Total Landed Cost – China vs. Pakistan (Per Unit, 2025)
Cost Component | China | Pakistan | Notes |
---|---|---|---|
Factory Cost (per unit) | $4.50 | $3.80 | T-shirt as reference product |
Tariff Rate | 145% | 10% | Includes base and special duties |
Tariff Amount | $6.53 | $0.38 | Applied to FOB cost |
Ocean Freight (per unit) | $0.42 | $0.32 | Based on 40ft container, 10,000 units |
Customs & Fees | $0.25 | $0.15 | Includes clearance & port fees |
Insurance & Docs | $0.10 | $0.10 | Similar across both |
Total Landed Cost | $11.80 | $4.75 | China = nearly 2.5x cost |
1. Tariffs: China Faces Hefty Duties, Pakistan More Manageable
China’s Tariff Breakdown:
As of 2025, U.S. tariffs on Chinese apparel average 145% for most HS codes under categories like:
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Knit T-shirts (6109)
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Woven trousers (6203)
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Sportswear and outerwear (6113, 6201)
This includes:
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Base MFN duty (e.g., 16.5%)
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Section 301 punitive tariff (up to 25%)
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Additional trade remedy duties (anti-dumping, CVD)
📌 For a $4.50 FOB T-shirt, you’ll pay $6.53 in tariffs—more than the item’s production cost.
Pakistan’s Tariff Status:
Pakistan faces a 10% flat tariff on most apparel categories under MFN status.
While GSP expired, the 10% tariff still represents significant savings over China. For a $3.80 item, the duty is just $0.38 per unit.
2. Shipping & Freight: Pakistan Offers Lower Costs
Shipping rates have stabilized in 2025, but cost and time still vary:
Route | China | Pakistan |
---|---|---|
Ocean Freight (40ft container) | $4,200 | $3,200 |
Avg. Per Unit Cost (10,000 pcs) | $0.42 | $0.32 |
Transit Time (to East Coast) | 25–30 days | 21–26 days |
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Pakistan’s shorter Suez Canal route reduces both time and cost to East Coast ports.
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Air freight is also cheaper from Pakistan ($4.80/kg vs. $5.50/kg from China), ideal for express needs.
3. Production Costs: Pakistan Remains Competitive
China:
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Highly automated
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Skilled labor
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High minimum wages ($400–$500/month in some provinces)
Pakistan:
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Lower labor cost (~$150/month avg.)
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Local cotton supply reduces raw material costs
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Specialized in denim, knitwear, sportswear
📌 Example: Basic custom hoodie
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China FOB: $8.00
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Pakistan FOB: $6.20
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Similar quality with ethical production standards
4. Compliance & Certifications
China:
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Advanced factories with strong compliance (but costly)
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Scrutiny over Xinjiang labor concerns
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Extra documentation required (e.g., UFLPA compliance)
Pakistan:
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WRAP, BSCI, ISO-certified factories available
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Transparent labor audits gaining traction
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Government support for sustainable practices in key export zones
EEAT Focus: Ethical sourcing and traceability are now as important as price.
5. Risk Factors & Trade Relations
China:
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U.S.–China tensions remain high
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Unpredictable tariffs, sanctions, or new legislation
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Risk of shipment delays or future bans
Pakistan:
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Stable trade route
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Lower scrutiny from U.S. customs
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Lower risk of surprise duties
Many brands are adding Pakistan as a “China+1” sourcing strategy to reduce reliance and stabilize margins.
Visual Comparison – Landed Cost Breakdown (Per Unit)
Category | China ($) | Pakistan ($) |
---|---|---|
Production | 4.50 | 3.80 |
Tariff | 6.53 | 0.38 |
Freight | 0.42 | 0.32 |
Customs/Docs/Fees | 0.35 | 0.25 |
Total | 11.80 | 4.75 |
📊 Visual suggestion: Pie chart or stacked bar chart showing cost distribution per region.
Which Country Offers Better Value in 2025?
Factor | Winner | Why |
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Tariff Burden | Pakistan | 10% vs. China’s 145% |
Production Cost | Pakistan | Labor & material efficiency |
Shipping Cost | Pakistan | Lower ocean and air freight |
Lead Time | Pakistan | Suez route faster to East Coast |
Compliance & Ethics | Tie | Both have strong options |
Risk Management | Pakistan | Lower trade tensions |
Real-World Example: 10,000 Unit Order (Basic T-shirt)
Cost Type | China Total | Pakistan Total |
---|---|---|
Production | $45,000 | $38,000 |
Tariffs | $65,300 | $3,800 |
Freight | $4,200 | $3,200 |
Customs & Docs | $3,500 | $2,500 |
Total | $118,000 | $47,500 |
China’s cost is nearly 2.5x higher—driven mainly by extreme tariff rates.
Final Thoughts: Should You Shift to Pakistan?
If your priority is profit margin, stability, and ethical sourcing, Pakistan wins in nearly every category for 2025.
China still leads in:
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Cutting-edge innovation
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Fully automated manufacturing
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Product variety and scale
✅ Many brands are choosing a hybrid approach—sourcing high-volume basics from Pakistan and using China for specialty or tech-integrated apparel.