From the Sector

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber to finished sewn products, issued the following statement March, 7 from President and CEO Kim Glas regarding President Donald Trump’s one-month suspension of tariffs for qualifying imports under the U.S.-Mexico-Canada Agreement (USMCA):

“We sincerely thank President Trump for pausing the 25 percent penalty tariffs on qualifying imports from Mexico and Canada under the USMCA trade deal for one month, while all parties continue to negotiate a deal to address his administration’s concerns over illegal immigration and fentanyl trafficking. We urge an expeditious resolution for all the parties to ensure the vitality of the U.S. textile industry.

“Under USMCA, the U.S. textile and apparel industry has formed a vital coproduction chain with Mexico and Canada that supports 1.6 million workers and generates $20 billion in two-way trade. It is by far the largest export region for American textile producers, representing $12.5 billion in combined U.S. exports – 53 percent of our total annual exports. U.S. textile inputs routinely come back as finished products to the United States under the trade agreement.

“As such, imposing tariffs on imported goods that comply with the USMCA would only serve to harm a key U.S. manufacturing sector that contributes significantly to the U.S. economy and workforce. It would also adversely impact two key trading partners and a North American coproduction chain that competes directly with China and Asia. In addition, it would further undermine the U.S. industry’s ability to make critical products for the U.S. military if this critical production chain were harmed.

“We appreciate President Trump’s delay in these tariffs and urge a more measured approach as well as a negotiated solution that at the very least exempts qualifying USMCA goods from penalty tariffs and closes the de minimis loophole once and for all.

“We look forward to working with President Trump and his administration on his trade agenda aimed at bringing jobs back to the U.S. and will continue to provide input on a plan to build a stronger, more vibrant domestic supply chain.”

The National Council of Textile Organizations (NCTO), National Chamber of the Textile Industry (CANAINTEX), and Canadian Textile Industry Association (CTIA) issued a joint statement urging President Donald Trump to reach a deal with Mexico and Canada to avoid imposing 25 percent tariffs on imports from these countries and to close the de minimis loophole immediately.

“All three of our countries are partners in a vital textile and apparel coproduction chain that generates $20 billion in two-way trade and helps support over 1.6 million jobs under the United States-Mexico-Canada Agreement (USMCA) — a trade deal that was negotiated during President Trump’s first term in office,” the associations said.

The U.S. textile industry ships $12.3 billion, or 53 percent, of its total global textile exports to Mexico and Canada. Those inputs come back as finished products to the United States under the USMCA.

Mexico exports $9 billion in textile and apparel to the United States. Mexico is the 4th largest exporter of textiles and the 6th largest exporter of apparel to the United States.

Canada exports approximately $1.8 billion in textiles and apparel to the United States and Mexico, with the United States being the destination for 64 percent of its total global textile export, including high-quality flame-resistant materials and medical equipment including PPE.

“While we fully support President Trump’s efforts to stem illegal migration and to address the fentanyl crisis as quickly as possible, we urge the administration to refrain from imposing penalty tariffs on imports from USMCA partners. We are focused on ensuring a normalized trading relationship between our countries,” said NCTO President and CEO Kim Glas. “Imposing penalty tariffs on imports from critical U.S. free trade agreement (FTA) partners will only serve to benefit China and other Asian countries that don’t play by the rules and to harm the U.S. textile industry and manufacturers in our Western Hemisphere supply chains.”

“As part of any deal with Mexico, Canada—and China—we also call on the Trump administration to end the de minimis tariff exemption immediately for imports from all countries. This loophole in U.S. trade law, which allows imports valued at $800 or less to enter the United States duty-free hurts our textile and apparel industries, rewards countries like China, and helps facilitate the flow of illegal and toxic products, such as fentanyl and fentanyl precursors into the U.S. market,” Glas added.

“Despite steps taken by our countries to prevent the importation of goods that are undervalued, made with forced labor or transshipped, we have seen firsthand how the Asian market has gained an unfair advantage through predatory trade practices, displacing companies and workers in our industries and undermining our critical coproduction chain,” said Rafael Zaga Saba President of CANAINTEX.

“Canada is seeking to preserve our strong coproduction chain with Mexico and the United States which spurs investment, trade and employment in our three countries,” said Jeff Ayoub, Chairman of the Board of CTIA. “These additional tariffs would harm our industries and workers, and we urge President Trump stop these expected tariffs from being imposed.”

“We look forward to working closely with the Trump administration and continuing to educate officials about the adverse impact of penalty tariffs on imports from Western Hemisphere countries and de minimis on our industries and workers, while highlighting the critical nature of our strong coproduction chain, which contributes to our overall investment, job growth, and economic stability,” the associations jointly added.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

• U.S. employment in the textile and apparel supply chain was 501,755 in 2023.
• The value of shipments for U.S. textiles and apparel was $64.8 billion in 2023.
• U.S. exports of fiber, textiles and apparel were $29.7 billion in 2023.
• Capital expenditures for textiles and apparel production totaled $2.27 billion in 2021, the last year for which data is available.

CANAINTEX is a Mexico City-based trade association representing Mexican textile producers.

• The textile industry in Mexico provides over 1.1 million jobs.
• Mexican textile exports are projected to reach 9 billion USD in 2024.
• Mexico is the 4th largest exporter of textiles and the 6th largest exporter of apparel to the United States.
• One out of every three pairs of pants sold in the U.S. is made in Mexico.
• With 36% domestic content in its exports, the textile industry generates the highest value-added of any manufacturing sector in the country.

CTIA represents domestic textile manufacturers across Canada, advocating for policies that support innovation, sustainability, and growth in the sector.

• The Canadian textile industry employs approximately 30,000 textile and apparel workers.
• The total value of shipments for Canadian textiles and apparel was approximately C$7.5 billion in 2023.
• Canada exported approximately US$2.66 billion in textiles in 2023, with 64% (US$1.71 billion) going to the United States.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement commending U.S. Customs and Border Protection’s (CBP) notice of proposed rulemaking aimed at curtailing de minimis shipments that are harming the U.S. manufacturing base and U.S. consumers.

Statement by NCTO President and CEO Kim Glas (17 January):
“We welcome CBP’s announced notice of proposed rulemaking exempting de minimis tariff-free benefits on imports ‘specified as trade and national security actions.’ This rulemaking represents a step forward in minimizing the impact of this disastrous loophole in U.S. trade law that has facilitated a surge of duty-free imports that are normally subject to penalty tariffs under various U.S. trade remedy statutes. Failure to collect these duties has exacerbated the flow of goods found to be in violation of U.S. trade laws that are costing American jobs and damaging our manufacturing sector.

“With this rulemaking, CBP and the administration seek to eliminate de minimis treatment for all imported products subject to U.S. trade remedies and penalties, including the current Section 301 tariffs on China. This is an important and much overdue reform.”

CBP states that the number of shipments over the past 10 years entering the United States claiming the de minimis administrative exemption has increased by more than 600%--from approximately 139 million a year in Fiscal Year 2015, to over one billion a year in FY 2023. During FY 2024, de minimis shipments rose once again to over 1.36 billion, according to CBP. The agency notes that the exponential increase ‘has created challenges for CBP’s effective enforcement of U.S. trade laws, health and safety requirements, intellectual property rights, and consumer protection rules.’     

“We have long called on the administration to use its existing authorities to mitigate the damage to our industry created by de minimis, which has functioned as a massive tariff loophole for low-cost, subsidized, and unethical Chinese imports and undermined the competitiveness of the U.S. textile industry—a key contributor to the workforce and the U.S. economy.

“The U.S. textile industry, a strategic supplier of goods to the U.S. military and PPE, is experiencing severe demand destruction fueled by 4 million de minimis shipments a day flooding our market with cheap, often illegal imports because of this outdated trade provision that rewards Chinese e-commerce platforms, importers and tariff cheaters with an open door to the U.S. market.

“The administration’s decision to initiate the rulemaking process in its final days is a significant and meaningful action for our domestic industry and that of other manufacturing sectors. We urge CBP to expedite the rulemaking process to the fullest extent possible and appreciate the agency’s strong engagement with our industry.

“Further, we strongly urge the incoming Trump administration to not only endorse this proposed rulemaking but to expeditiously implement a comprehensive solution to the growing de minimis problem beyond the action announced today. Noting the magnitude of the problem, and the inability of CBP to effectively enforce our trade laws with the flood of de minimis packages coming in daily, we are calling on President-elect Donald Trump to take immediate steps to end de minimis by executive order. We are also pressing Congress to work together with the new administration on a permanent and comprehensive solution to immediately close this disastrous loophole once and for all.

“We are strongly committed to working with CBP on the rulemaking process as well as the Trump administration and both sides of the aisle in Congress to get this done immediately to help provide relief to this most impacted industry and others. “

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement welcoming the introduction of the bipartisan “Protecting American Industry and Labor from International Trade Crimes Act,” a bill that aims to combat trade fraud and hold those committing the crimes accountable.

Statement by NCTO President and CEO Kim Glas:
“We commend Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL), who lead the House Select Committee on the CCP, along with Congresswoman Ashley Hinson (R-IA) and others for introducing this bipartisan legislation that will put real teeth into combatting trade crimes that are undermining American textile and apparel manufacturers.

“NCTO has called for additional federal tools and resources to urgently address the pervasive trade crimes impacting our industry as well as other U.S. manufacturing sectors. We are pleased that this legislation will do exactly that by establishing a formal structure within the Department of Justice’s Criminal Division dedicated to aggressively prosecute international trade crimes.

“The U.S. textile and apparel supply chain has been severely harmed by rampant trade fraud, including an onslaught of imported products made with forced labor, which circumvent the U.S. ban on these imports, fraudulent rules of origin claims under our free trade agreements, and evasion of duties through abuse of the de minimis trade loophole. This had resulted in the closure of 18 textile plants over the past several months and job losses, combined with closures in Western Hemisphere trade partners who have suffered tens of thousands of job losses.

“We believe this bipartisan legislation is a critical step forward in confronting such massive fraud and will serve to hold bad actors accountable and help shield our vital domestic industries from these crimes.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement welcoming the appointment of Katherine White as Chief Textiles and Apparel Negotiator for the U.S. Trade Representative’s Office (USTR).

“Katherine White is an excellent choice for the critical position of Chief Textiles and Apparel Negotiator. We are also grateful to U.S. Trade Representative Ambassador Katherine Tai for elevating this position back to a political appointee role, which is historically how it has been designated.

Katherine comes to this position with an outstanding resume, including a strong knowledge base and expertise in manufacturing policy and on textile-related trade issues, having worked most recently as an International Trade Policy Advisor on the House Ways and Means Committee, and prior to that, at the U.S. Department of Commerce and the White House.

Given the prominence of both the agency and her political appointment, we know she will play a highly instrumental role in shaping policy impacting our industry. She is a fantastic choice.  We thank Ambassador Tai for the redesignation of this critical office and her support for our textile industry and its workforce. We also sincerely thank Dr. Laurie-Ann Agama for her service in the role through this transition.

We could not be more delighted to work with Katherine in her new capacity and look forward to coordinating with her on manufacturing and worker-centered trade policy that will help bolster the vital domestic textile sector.”

Glen Raven hosted United States Trade Representative (USTR) Ambassador Katherine Tai in an important visit to the company’s yarn spinning manufacturing facility and headquarters for its Sunbrella® flagship brand in Burlington, N.C. followed by an industry supply chain roundtable.

Ambassador Tai’s visit coincides with USTR’s Federal Register notice for public input to inform the administration’s development of trade and investment policy initiatives related to a domestic supply chain resilience plan.

USTR has highlighted domestic textiles as a critical part of the supply chain. The textile sector, which includes yarns, fabrics, apparel and other finished goods, will be part of its fact-finding investigation into shaping policy tools that could be deployed to enhance supply chain resilience. The office is requesting input on policies that are currently working well for these sectors, and those that are not working well, in advancing domestic supply chains.

The Ambassador’s visit to Glen Raven included a tour of the Sunbrella facilities, a design and innovation center, and a roundtable discussion with several other textile executives based in North Carolina who highlighted the significant impact of the sector to the U.S. economy.

Glen Raven, a family-owned company founded in 1880, operates five manufacturing facilities in North and South Carolina employing 2,500 people, including their joint venture with Shawmut Corporation. The company is currently in the process of scaling a $250 million multi-phase U.S. capacity expansion plan of its facilities and infrastructure to meet customer demand.

The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, led by Chairman Mike Gallagher (R-WI) and Ranking Member Raja Krishnamoorthi (D-IL), adopted nearly 150 policy recommendations in a bipartisan report that outlines a strategy to fundamentally reset the United States' economic and technological competition with the People's Republic of China.

After the adoption of the policy recommendations on an bipartisan basis, Chairman Gallagher and Ranking Member Krishnamoorthi said, “With this report, the Select Committee has shown that the bipartisan will exists to meet the call of history. It embraces the clear reality that our current economic relationship with the People's Republic of China needs to be reset in order to serve the economic and national security interests of the United States, while offering nearly 150 bipartisan recommendations for Congress to legislate. Collectively, these recommendations will reset the terms of our relationship with the PRC, prevent the flow of American capital and technology from supporting its military advances and human rights abuses, and build collective economic resilience in concert with our allies and partners while ensuring American leadership for decades to come."

Members of the Select Committee spent the past year investigating the CCP's decades-long campaign of economic and technological warfare. The members define three key pillars that inform each recommendation and the United States' path to correct 30 years of misguided policy:

• RESET: Reset the Terms of Our Economic Relationship with the People's Republic of China.
• PREVENT: Stem the Flow of U.S. Capital and Technology Fueling the People's Republic of China's Military Modernization and Human Rights Abuses
• BUILD: Invest in Technological Leadership and Build Collective Economic Resilience in Concert with Allies

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The National Council of Textile Organizations (NCTO), representing the full spectrum of the U.S. textile industry from fibers through finished sewn products, welcomed Vice President Kamala Harris’ announcement of $585 million in new textile and apparel investments and sourcing commitments in Central America.

“Over the past year, well over $1 billion of new textile and apparel investments have been announced in Central America and the United States,” said NCTO President and CEO Kim Glas.  “The $585 million of investments and sourcing commitments announced today in the region will continue to build on the strong momentum of growth of nearshoring and onshoring these critical supply chains.”

“The investments and sourcing commitments announced today continue to build on the robust textile and apparel co-production chain between the U.S. and Central America,” said NCTO President and CEO Kim Glas. “We sincerely appreciate the administration’s commitment to this critical manufacturing sector that has contributed to the backbone of economic development in Central America and the United States. And we look forward to working with our retail and brand partners to continue to expand our vital manufacturing sector.”

Over the last year, substantial investments have been flowing into Central America, predicated on the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the co-production chain that facilitates $15.1 billion in two-way textile and apparel trade and supports more than one million workers in the U.S. and the region.

“We saw apparel imports largely containing U.S. textile inputs from the CAFTA-DR region jump 24 percent according to the latest government trade data and we have seen well over $1 billion in investments in the region,” Glas said.

Several NCTO members previously joined the Vice President last year to announce their investments and sourcing commitments, including Parkdale Mills, Unifi, and SanMar.

“These are just a few of the key investments in the region, which illustrates how this co-production chain is continuing to make sustainable investments that strengthen supply chain resilience, create job opportunities and investment in the U.S. and the region, and ensure transparency in our supply chains, as momentum grows for onshoring and nearshoring textile and apparel production,” Glas said. “That is a win-win for our industry and the region.”

The National Council of Textile Organizations (NCTO) commends the Senate for passing the Fiscal Year 2023 National Defense Authorization Act (NDAA), which includes a key provision aimed at spurring more government procurement of domestically produced essential products, providing a significant benefit to the U.S. textile industry.

“We applaud the Senate for getting the NDAA across the finish line today, and we are pleased the legislation will now go to President Biden for his signature,” said NCTO President and CEO Kim Glas. “The underlying NDAA conference report includes a critical bill known as the Homeland Procurement Reform (HOPR) Act, which establishes specific criteria that the Department of Homeland Security (DHS) must meet to procure more domestically manufactured uniforms, footwear, and related critical items by DHS agencies.”

“NCTO sincerely thanks the Warrior Protection and Readiness Coalition (WPRC) and the coalition of industry and labor groups who helped secure inclusion of the HOPR Act in the NDAA,” Glas said. “This common-sense bill will ensure that key divisions of the DHS can procure American-made critical uniforms and protective equipment to support the execution and enforcement of their missions.”

Glas added, “The importance of the domestic textile industry and a warm industrial base was heightened during the pandemic when the industry pivoted overnight to retool production lines to address severe shortages of lifesaving products. That experience demonstrated how imperative it is to build and expand a permanent domestic manufacturing base for our country’s health and national security. The HOPR Act is poised to provide a greatly needed demand signal to the U.S. manufacturing industry for expanded government procurement of American-made essential items, ranging from uniforms to footwear and body armor and helmets. It is a step in the right direction to further safeguard our national security from unreliable foreign supply chains in China and other countries for essential materials.”

Once signed into law, the new HOPR provisions will go into effect in 180 days.