The National Council of Textile Organizations (NCTO), representing U.S. textile manufacturers from fiber production to finished sewn goods, has raised significant concerns regarding newly imposed tariffs on Canada and Mexico, as well as ongoing trade policies with China.
Concerns Over USMCA Tariffs
NCTO President and CEO Kim Glas emphasized the critical role of the textile and apparel coproduction chain between the U.S., Canada, and Mexico. She noted that imposing tariffs on these trade partners could destabilize an industry supporting nearly 500,000 American jobs and a total of 1.6 million jobs across North America.
“The U.S. textile industry exports $12.3 billion—53% of its total global textile exports—to Mexico and Canada. These materials return as finished goods under the United States-Mexico-Canada Agreement (USMCA), forming a $20 billion two-way trade relationship that fuels regional investment and job creation,” Glas stated.
She further warned that penalizing USMCA imports would provide an unintended advantage to China and other Asian markets, which have long relied on unfair trade practices such as forced labor, subsidies, and counterfeit goods. The U.S. textile industry has already lost 27 manufacturing plants in the last 20 months, highlighting the sector’s vulnerability to external economic pressures.
Support for Increased Tariffs on China
NCTO has welcomed President Trump’s decision to impose an additional 10% tariff on Chinese imports, increasing the total penalty tariff on China to 20% in 2025. However, Glas urged the administration to further raise tariffs specifically on finished apparel and textile imports, as this would directly counter China’s dominance in global textile trade.
Closing the De Minimis Loophole
A key concern raised by NCTO is the de minimis loophole, which allows approximately 4 million small shipments to enter the U.S. duty-free daily, often bypassing trade enforcement measures. Glas stressed that this loophole enables the importation of unsafe, illicit, and unethically made products, including counterfeit goods and narcotics such as fentanyl.
“Raising tariffs without closing the de minimis loophole will only encourage more importers to exploit this duty-free exemption,” Glas warned. “This not only harms American manufacturers but also exacerbates the fentanyl crisis, as drug cartels use the loophole to smuggle narcotics into the country.”
Call to Action
NCTO remains committed to working with the Trump administration to craft trade policies that strengthen the U.S. textile industry while ensuring fair and enforceable regulations. The organization urges the administration to:
- Reassess tariffs on USMCA trade partners to protect domestic manufacturers.
- Increase targeted penalties on finished textile and apparel imports from China.
- Close the de minimis loophole to prevent trade abuses and illegal shipments.
“This is a pivotal moment for the domestic textile industry,” Glas concluded. “With the right policies, we can preserve and expand our manufacturing base, drive job creation, and foster sustainable economic growth.”
NCTO, headquartered in Washington, D.C., serves as the voice of the American textile industry, advocating for policies that promote fair trade and domestic manufacturing growth.
