Jay Apparel Group (JAG) reports expanding into Central America to address the escalating tariffs affecting the global textile and apparel industry.

The NYC-based company said the move responds to “rising costs and uncertain trade policies.”

“Jay Apparel Group is taking a significant position in Central America to diversify its manufacturing footprint and ensure uninterrupted supply to its North American retail partners. This move reflects the company’s long-term commitment to creating a more agile and sustainable supply chain, the company said in a media release.

Central America offers an exceptional opportunity for nearshoring due to its proximity, trade agreements and growing textile infrastructure, said Jay Kapadia, president of Jay Apparel Group. “We believe this strategic investment will allow us to reduce lead times, improve flexibility, and mitigate the impact of ongoing tariff pressures.”

The company expects the expansion to generate new jobs, support local economies and reinforce its responsible sourcing and innovation mission in the apparel sector.

JAG said it would focus on men’s woven sport shirts and other core products in Honduras and other key regional hubs, leveraging the benefits of U.S. trade programs, including the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).

Image courtesy JAG