PERU · TRADE
Key Facts
- The country Peru is a major copper and gold exporter in South America with a free-trade agreement with the United States since 2009.
- What happened Peru’s Association of Exporters blamed extra US tariffs on Tuesday, 13 October, for a 5.7% fall in Peru clothing exports from January to August.
- The numbers Clothing exports fell to US$764.1 million from US$810.6 million a year earlier, and the United States bought US$490.4 million, or 64.2%.
- US imports US clothing imports from Peru fell 10.4% in the first eight months of 2026, leaving Peru in 19th place among suppliers.
- Jobs Jobs tied to clothing exports fell 14.6% through July, a loss of 33,487 direct, indirect and induced posts, and 49 fewer firms exported.
- Power Index Peru ranks 5th of 14 in The Rio Times Latin America Power Index, with 54.7 points (October 2026 edition).
- Still open How much of the slide comes from tariffs rather than a stronger sol and high logistics costs, and when the government’s recovery plan arrives.
Peru clothing exports fell 5.7% to US$764.1 million in the first eight months of 2026, and the country’s exporters blame US tariffs. The United States buys almost two-thirds of the clothing Peru sells abroad, from cotton T-shirts to knit shirts.
The Asociación de Exportadores (ADEX), a Lima business group that speaks for Peruvian exporters, released the market breakdown on Tuesday, 13 October. It said extra US duties of 10% since April 2025 and 12.5% since July 2026 leave Peruvian clothing less competitive.
What the Exporters Reported
ADEX said Peru clothing exports totalled US$764.1 million between January and August, down from US$810.6 million in the same months of 2025. It said the fall came mainly from the tariffs imposed by the United States, the sector’s main market.
César Tello Ramírez, the association’s president, said the extra duties weaken Peru against suppliers from Asia and Central America. “These are factors that hinder the momentum of this activity,” he said, pointing to a world market ever more sensitive to costs.
ADEX’s overall export report on Tuesday, 6 October, already showed the 5.7% clothing decline, while high metal prices lifted total exports 34.3%. The new statement added the breakdown by market and tied the slide directly to Washington’s tariffs.
Why the US Market Matters
The United States took 64.2% of Peru clothing exports from January to August, worth US$490.4 million, according to ADEX. Brazil came a distant second at US$57.6 million, up 15.2%, out of 85 markets in all.
Chile, Canada, Germany, Colombia, Venezuela, China, Mexico and Argentina completed the top ten buyers. The best-selling products were cotton T-shirts for men and women, single-colour cotton T-shirts and knit shirts of synthetic fibres.
ADEX also cited the Office of Textiles and Apparel (OTEXA), the US Commerce Department unit that tracks American clothing imports. By that count, US clothing imports from Peru fell 10.4% from January to August, placing Peru 19th among suppliers.
Total US clothing imports slipped 2.5% over the same months by OTEXA’s count, with shipments from China down 29.4%. Only three of the ten largest suppliers grew: Cambodia by 6.9%, Italy by 6.1% and Indonesia by 2.6%.
Jobs and the Government’s Emergency Plan
The slump is hitting a labour-heavy industry, which generated more than 411,000 direct jobs in 2025, according to the Ministry of Production. Through July, the number of companies exporting clothing fell 5.6%, or 49 firms, and jobs tied to clothing exports fell 14.6%, ADEX said.
That equals 33,487 lost jobs, counting direct, indirect and induced positions. Tello welcomed a government decree, announced on Thursday, 1 October, that put the textile and clothing chain under emergency for 120 calendar days.
The decree, Supreme Decree 014-2026-PRODUCE, orders the Ministry of Production to approve a recovery plan within 15 working days. The plan is aimed mainly at small firms, and the decree sets out four lines of action.
The four are easier financing, training and productivity, state purchases from small firms through the Compras a MYPErú programme, and trade promotion in new markets. Tello said a full recovery also requires fixing problems tied to exports.
He listed high logistics costs, a shortage of skilled workers and a stronger sol, Peru’s currency, which makes exports dearer abroad. He also called for faster digital change and more automation in factories.
What It Means for You
For American retailers and shoppers, Peruvian clothing now carries an extra 12.5% US duty, despite a free-trade agreement in force since 2009. The same US order spares textiles and clothing that enter duty-free from Central America and the Dominican Republic under their own trade pact.
For US brands that source in Peru, the emergency plan promises financing and support for small firms, but it cannot change US duties. ADEX itself urges exporters to sell more elsewhere, since heavy reliance on a few markets raises their exposure to trade shocks.
For investors, clothing earned US$764.1 million in eight months, a small sum next to Peru’s copper and gold sales. The next test lies with the people who run Peru’s economy, since the Ministry of Production must now deliver its plan.
What Is Not Known
ADEX did not put a figure on how much of the fall in Peru clothing exports came from tariffs rather than other costs. It also did not say how many of the 33,487 lost jobs were direct factory posts rather than indirect or induced ones.
ADEX did not say when the Ministry of Production will present the recovery plan the decree requires. ADEX has not yet published clothing export figures for September, which would show more of the higher duty’s effect.
More: Peru news in English, every day from The Rio Times.
Frequently Asked Questions
Why are Peru’s clothing exports falling?
Peru clothing exports fell 5.7% from January to August, and the exporters’ association ADEX mainly blames extra US tariffs. It also points to high logistics costs, a shortage of skilled workers and a stronger sol.
How much Peruvian clothing does the United States buy?
The United States bought US$490.4 million of Peruvian clothing from January to August 2026, or 64.2% of the total. Brazil was a distant second at US$57.6 million.
Does Peru have a free-trade agreement with the United States?
Yes, the US-Peru Trade Promotion Agreement has been in force since 1 February 2009. Even so, a US Trade Representative order has added a 12.5% duty on most Peruvian goods since 24 July 2026.
What is Peru doing to help its clothing industry?
A government decree declared the textile and clothing chain in emergency for 120 calendar days. It orders the Ministry of Production to approve a recovery plan, aimed mainly at small firms, within 15 working days.
Sources: ADEX (Asociación de Exportadores), press release on clothing exports, 13 October 2026; ADEX, press release on total exports January to August, 6 October 2026; Office of the United States Trade Representative, Notice of Actions in Section 301 Investigations (Federal Register), 28 July 2026; Office of the United States Trade Representative, USTR Takes Action in Forced Labor Section 301 Investigations, 23 July 2026; Office of the United States Trade Representative, Peru Trade Promotion Agreement, 14 October 2026; Ministerio de la Producción (Produce), textile and clothing emergency, 1 October 2026; Gestión, 13 October 2026; La República, 13 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief