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Colombia 12.5% tax keeps nearshoring math viable: Tulum

Colombia's 12.5% tax does not overturn the case for US apparel nearshoring, but the math only works when brands read the fine print, according to José Olarte, founder of Colombia-based manufacturer Tulum Fashions. Writing for Just Style on October 26, 2026, Olarte addresses brands with existing Colombian programmes and those considering a move from Asia, arguing that the tax is a quantifiable input rather than a dealbreaker. The commentary appears in Just Style's premium analysis section, which covers apparel sourcing, supply chain and trade.

Original source: just-style.com

Colombia 12.5% tax keeps nearshoring math viable: Tulum

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Colombia's 12.5% tax does not overturn the case for US apparel nearshoring, but the math only works when brands read the fine print, according to José Olarte, founder of Colombia-based manufacturer Tulum Fashions. Writing for Just Style on October 26, 2026, Olarte addresses brands with existing Colombian programmes and those considering a move from Asia, arguing that the tax is a quantifiable input rather than a dealbreaker. The commentary appears in Just Style's premium analysis section, which covers apparel sourcing, supply chain and trade.

According to www.just-style.com, Colombia’s newly imposed 12.5% tax has not broken the economic case for US apparel nearshoring, but the calculation only holds when brands read the fine print, argues José Olarte, founder of Colombia-based apparel manufacturer Tulum Fashions.

Brands Reassess the Colombia Case

The question now facing brands with existing programmes in Colombia, or those weighing a move there from Asia, is whether the sourcing case still stands after the tax change. Olarte’s assessment, published by Just Style on October 26, 2026, is that the math works — provided the assumptions behind it are honest.

The commentary is framed as a direct response to the wave of sourcing decisions being revisited across the apparel sector, where brands have been shifting production closer to the US market. Olarte, whose company operates manufacturing in Colombia, addresses the practical concerns of those already committed to the country as well as those still evaluating it.

Rather than presenting nearshoring as a simple cost comparison, the article positions the 12.5% tax as one input among several that determine whether a Colombia programme delivers. The piece is published as a guest contribution under the Just Style analysis section.

The Fine Print Behind the Math

Olarte’s central argument is that the nearshoring equation remains favourable, but only for brands that account for the full set of conditions attached to operating in Colombia. The 12.5% tax is treated as a known, quantifiable factor rather than a reason to abandon the region.

The commentary is aimed squarely at the decision-makers who have asked whether the case still holds — brands with Colombian programmes and those planning to relocate from Asia. Olarte’s answer, in essence, is that the arithmetic survives the tax, but the quality of the underlying assumptions determines the outcome.

Just Style published the piece as a guest author contribution, placing it within its premium analysis coverage of apparel sourcing. Access to the full commentary requires a Just Style Premium Membership, offered at a £1 trial for one month.

What the Commentary Covers

The article sits within Just Style’s wider coverage of apparel sourcing, supply chain and trade themes, alongside reporting on topics including climate-linked worker risk, traceability and consumer demand trends.

Just Style’s premium tier, which hosts the Olarte commentary, includes analyst commentary, forecasts and data-driven insights on the global apparel industry. The publisher also offers free access in exchange for information on reader interests across sectors and geographies.

For brands weighing Colombia against Asian sourcing bases, the takeaway from the commentary is that the 12.5% tax does not by itself invalidate nearshoring — the deciding factor is whether the numbers are built on honest assumptions rather than optimistic ones.

Source: Just Style

Compiled from international media by the SCI.AI editorial team.

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