From the Sector

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber, yarn and fabrics to finished sewn products, issued the following statements from NCTO President and CEO Kim Glas and several U.S. textile executives in support of President Trump’s order closing de minimis for China, effective May 2.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas

“We are grateful to President Trump and his administration for closing the destructive de minimis loophole that has allowed unsafe and illegal Chinese goods—including goods made with forced labor—to flood the U.S. market duty-free and largely unchecked for years.

“This loophole, largely exploited by Chinese e-commerce giants and others to skirt U.S. tariffs, regulations and laws, has contributed to the closure of 28 textile mills in the past 22 months.

“The U.S. textile industry is a critical and strategic sector, supplying more than 8,000 products to the U.S. military, as well as industrial and commercial markets, while supporting local communities across country, and employing 471,000 workers nationwide.

“Today’s action by the administration is an important step forward to help rebalance the playing field for American manufacturers, preserve good-paying American manufacturing jobs, spur more investment and innovation in manufacturing facilities here at home, and close the backdoor to China once and for all.

“We urge the administration and Congress to move swiftly to end de minimis for commercial shipments from all countries to prevent circumvention and to make sure Made in China products cannot enter the United States through third countries. The U.S. textile industry stands ready to assist the administration as it continues its work to end the de minimis exemption and implement this critical provision.”

Anderson Warlick, Chairman and CEO of Parkdale Mills
“The de minimis loophole has impacted our businesses and our workforce significantly. Roughly half of de minimis shipments contain textile and apparel products which get an unfair competitive advantage at our expense. Illegal products like fentanyl and products made with Uyghur forced labor come into the United States under the de minimis exemption, causing economic damage and impacting the lives of many Americans.

“I am pleased to see President Trump take action to eliminate de minimis for products from China, and I encourage the administration to end de minimis for imports from all countries so we textile manufacturers can compete on a more level playing field.”

Amy Bircher Bruyn, CEO & Founder of MMI Textiles
“The de minimis loophole has wreaked havoc on the U.S. textile industry by enabling duty-free access for massive volumes of fast fashion imports, largely from China. This policy undermines American manufacturers who play a critical role in our national security and industrial resilience.

“At MMI Textiles, we employ 39 direct team members and support an additional 21 indirect workers — including a printer of camouflage patterns who operates exclusively within our NC facility, summer interns who represent the next generation of textile leaders, and specialized industry consultants. More broadly, through our robust contract manufacturing network, we directly support hundreds of jobs across the U.S. supply chain. Our company is a catalyst for employment and innovation in domestic textiles, producing essential components for U.S. military and law enforcement applications.

“The U.S. textile industry is vital to our nation’s industrial base. We supply the U.S. military, and during the COVID-19 pandemic, our industry pivoted rapidly to manufacture lifesaving PPE for frontline workers. Despite these contributions, the current de minimis threshold has created an unfair advantage for foreign competitors, particularly China, by allowing them to bypass duties and flood the market with underpriced goods — at the direct expense of American jobs.

“I am encouraged by President Trump’s commitment to ending de minimis eligibility for Chinese imports. I urge the administration to move swiftly to eliminate this loophole for all imports and restore a level playing field that protects U.S. manufacturing, jobs, and national security.”

Ron Sytz, CEO of Beverly Knits
“I am truly thankful to President Trump for closing the de minimis loophole for Chinese imports. This loophole has been devastating to my family’s 44-year-old textile manufacturing business in Gastonia, North Carolina, forcing us to lay off 175 workers and significantly reduce capacity in our plants. We can’t compete against subsidized imports from China that enter the U.S. duty free through the de minimis loophole. With the administration’s action, our company which provides hundreds of jobs and supports our community and the U.S. economy, will once again have a level playing field that will allow us to expand, invest and hire more associates here in the United States.”

The European Chemicals Agency brings forward a proposal for an EU-wide restriction on certain hexavalent chromium, Cr(VI), substances. The aim is to reduce the harmful effects of these carcinogenic chemicals for both workers and the public.

At the request of the European Commission, ECHA has assessed the risks posed by certain Cr(VI) substances to workers and the public as well as the socio-economic impacts of potential restrictions.

The Agency concluded that an EU-wide restriction is justified as Cr(VI) substances are among the most potent workplace carcinogens and pose a serious risk to workers’ health. People living near industrial sites that release these substances into the environment are also at risk of lung and intestinal cancers.

ECHA proposes to introduce a ban on Cr(VI) substances, except in the following use categories when they meet defined limits for worker exposure and environmental emissions:

1. Formulation of mixtures
2. Electroplating on plastic substrate
3. Electroplating on metal substrate
4. Use of primers and other slurries
5. Other surface treatment
6. Functional additives/process aids

Such a restriction could replace the current authorisation requirements under REACH, ensuring that the risks associated with Cr(VI) substances are effectively controlled once they are no longer subject to REACH authorisation. Additionally, barium chromate is included in the scope of the restriction to avoid regrettable substitution.

The restriction could prevent up to 17 tonnes of Cr(VI) from being released into the environment and avoid up to 195 cancer cases each year. Over 20 years, the total monetised benefits are estimated to be €331 million or €1.07 billion, depending on the restriction option chosen. The total cost to European society is estimated at either €314 million or €3.23 billion. These costs include investments in measures to reduce environmental releases and worker exposure, cost of closures and relocations, and replacing Cr(VI) substances with safer alternatives.

All stakeholders have the opportunity to provide information backed by robust evidence during a six-month consultation, which is expected to start on 18 June 2025. ECHA is planning to organise an online information session to explain the restriction process and help stakeholders take part in the consultation.

Next steps
ECHA’s scientific Committees for Risk Assessment and Socio-Economic Analysis will evaluate the restriction proposal. In their evaluation, they will consider the scientific evidence received during the consultations.
The European Commission, together with the 27 EU Member States, will take the decision on the restriction and its conditions – based on ECHA’s proposal and the committees’ opinion.

ECHA is the EU’s chemicals agency responsible for implementing EU chemical regulations.

After years of giving precedence to economic growth over environmental considerations, China has set ambitious goals to tackle ecological challenges and to emerge as a global leader in green innovation.

For European SMEs, China's green transformation can unlock opportunities in sectors such as renewable energy, environmental technologies, sustainability consulting, and ESG services. However, challenges remain, and many European firms face hurdles in matters of compliance with the country’s strict and evolving regulatory landscape.

On 24 April, the EU SME Centre and European Union Chamber of Commerce in China are inviting European SMEs to a workshop on China’s green development sector, its emerging market opportunities and challenges to prepare for.

Thursday 24 April
In Shenzhen & Online
10:00 – 11:30 Brussels Time / 16:00 – 17:30 Beijing Time

Agenda: CST – China Standard Time
16:00 – 16:05 Opening remarks
- Klaus Zenkel, Vice President and Chair of the South China Board, European Chamber
- Liam Jia, Team Leader, EU SME Centre

16:05 – 16:25 Green Development in China: Opportunities and Challenges for European SMEs in China
Nathalie Ieong, Senior Project Manager and Expertise Manager, Terao Asia

16:25 – 16:45 Update on the European Commission’s Simplified Rules on Sustainability and Their Potential Impact on EU SMEs in China
Prabhu Ramkumar, Vice President and Head of Sustainaibility of TÜV SÜD North Asia

16:45 – 17:15 Panel Discussion: Industry Case Studies & Best Practices
Moderator: Filippo Pallaroni, Training Centre Coordinator, EU SME Centre

Panellists:
Nathalie Ieong, Senior Project Manager and Expertise Manager, Terao Asia
Prabhu Ramkumar, Vice President and Head of Sustainaibility, TÜV SÜD North Asia
Christian Gassner, Vice Chair of the European Chamber Manufacturing Forum
Tobias Könings, Vice Chair of the European Chamber SME Forum
Jiahui Lu, Associate Vice President of Towngas Smart Energy

17:15 – 17:25 Q&A session

17:25 – 17:30 Closing remarks

Online registration