PERU · TRADE
Key Facts
- The country Peru is a South American copper and gold exporter with a free-trade agreement with the United States that took effect in 2009.
- What happened In October 2026 the head of the textile committee of Peru’s main industry group said US tariffs are hurting garment exports.
- The tariff The United States has charged Peru an extra 12.5% duty since 24 July 2026, while rivals in Central America pay none on most garments.
- The damage Production of textiles and clothing fell 9.9% from January to July 2026, and factories used only 58.4% of their capacity.
- The emergency Peru’s government declared the sector in emergency on 1 October 2026 for 120 days, with credit guarantees and technical help.
- Power Index Peru ranks 5th of 14 in The Rio Times Latin America Power Index, with 54.7 points (October 2026 edition).
- Still open It is not known when Washington will restore zero duty for Peru, or whether Peru’s forced-labor import ban will pass Congress.
Peru textile makers want duty-free access to the US, their biggest customer, restored after a 12.5% US tariff took effect on 24 July 2026. Raúl Saba, who leads the textile committee of the SNI, Peru’s main manufacturers’ lobby, said in October that the duty is hurting garment sales.
For US readers the story reaches the shopping aisle, because Peru supplies cotton T-shirts and knit shirts to American buyers. The government has declared a 120-day emergency for the sector, and the tariff is one of the pressures behind it.
What the Textile Lobby Is Saying
Saba said Peru supplies only a small slice of American garment purchases. He added that the tariff still hurts, because buyers can move orders to rivals that pay nothing.
Those rivals sit in Central America, where El Salvador, Honduras, Guatemala and Nicaragua still ship to the US at zero tariff, Gestión reported. Saba said the government is working to restore zero tariffs for Peru, and Peru textile makers back that push.
How the 12.5% Tariff Arrived
On 23 July 2026 the US Trade Representative, Washington’s top trade negotiator, announced new tariffs on economies that lack a ban on forced-labor imports. It set 10% for economies with such a ban and 12.5% for all other investigated economies.
Peru’s trade ministry, Mincetur, said the 12.5% duty on Peru took effect at 12:01 a.m. Eastern time on 24 July, Andina reported. It added that more than 2,000 products are excluded, which together make up 45% of US imports from Peru.
Mincetur also said the US finding does not conclude that Peru exports goods made with forced labor. Peru’s government has sent Congress a bill to ban such imports, which it says would answer Washington’s main concern, Andina reported.
How Much Peru Sells to the US
The United States buys 49% of Peru’s textile and clothing exports and 64% of its apparel exports, Gestión reported. The sector supports nearly 300,000 formal jobs, and US sales fell 10.2% in early 2026.
Industry leaders expect Peru textile makers’ sales to fall 10% to 12% by the end of 2026. Buyers are not cancelling orders but are asking suppliers to absorb half or all of the new duty, the paper reported.
The Rio Times reported on 14 October that exporters blamed US tariffs for a 5.7% fall in clothing exports. The latest warning comes from the manufacturers’ side.
The 120-Day Emergency
The government published Supreme Decree 014-2026-Produce on 1 October 2026, declaring the textile and clothing sector in emergency for 120 days, El Peruano reported. It cites a 9.9% production fall from January to July and factories running at 58.4% of capacity.
The sector includes more than 47,000 formal companies, and 99.4% of them are micro and small firms. It employed over 411,000 people directly and exported about US$1.72 billion in 2025, El Peruano reported.
The decree calls for a temporary credit guarantee program, technical help for producers and stronger access to public purchases such as school uniforms. Production Minister Juan Carlos Requejo said the government is acting to protect productive capacity and jobs, Gestión reported.
Produce, the production ministry, must approve a reactivation plan within 15 business days, Gestión reported. Economist Miguel Alzamora of the Peruvian Economic Institute said the sector has not recovered since 2023, according to the paper.
What It Means for US Readers
For American retailers, the tariff on Peru textile makers means higher costs on Peruvian cotton shirts or pressure on suppliers to cut prices. Buyers can also shift orders to Central America, where duty is zero.
For US investors in Peruvian assets, the textile slump is small next to copper and gold but hits a labor-heavy sector. A restored zero tariff would be a clear sign that Washington is willing to reward Peru’s forced-labor ban.
What Is Not Known
No date is set for Washington to review the 12.5% tariff on Peru. Mincetur says it will seek a review, but the US has not said whether it will grant one to Peru textile makers.
It is not known whether Peru’s Congress will take up the forced-labor import bill. The content of the reactivation plan and the size of the credit guarantee fund are also not public.
More: Peru news in English, every day from The Rio Times.
Frequently Asked Questions
What is the US tariff on Peruvian textiles?
The United States has charged Peru an extra 12.5% duty since 24 July 2026. It applies to most Peruvian goods that are not on the exclusion list.
Why did the US impose the tariff on Peru?
Washington said Peru and dozens of other economies have not banned imports made with forced labor. Peru’s government has sent Congress a bill to close that gap.
Do competitors pay the same tariff?
No, makers in El Salvador, Honduras, Guatemala and Nicaragua still ship to the US at zero tariff. That gap is why Peru textile makers say they are losing orders.
What is the textile emergency in Peru?
It is a 120-day declaration made on 1 October 2026 by Supreme Decree 014-2026-Produce. It brings credit guarantees, technical help and support for public purchases.
Will US shoppers see a difference?
Prices for Peruvian cotton shirts could rise if retailers pass on the duty. Some brands may instead move orders to cheaper or duty-free suppliers.
Sources: Office of the US Trade Representative, 23 July 2026; Andina, 24 July 2026; Gestión, 30 July 2026; El Peruano, 1 October 2026; Gestión, 2 October 2026; Infomercado, 1 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