The National Council of Textile Organizations (NCTO) has raised serious concerns regarding the Trump administration’s recent decision to impose 25 percent tariffs on imports from Mexico and Canada and additional 10 percent tariffs on China. The organization, which represents the full spectrum of the U.S. textile industry, warns that these tariffs could destabilize a crucial textile and apparel coproduction chain with Mexico and Canada, leading to significant job losses and economic disruption across North America.
NCTO President and CEO Kim Glas emphasized that the U.S. textile industry relies heavily on trade with Mexico and Canada, exporting $12.3 billion worth of textiles, which accounts for 53 percent of total U.S. textile exports. Under the United States-Mexico-Canada Agreement (USMCA), this trade partnership has fostered $20 billion in two-way trade, supporting nearly 1.6 million jobs across the region. Glas warned that disrupting this supply chain could push more production towards China and other Asian competitors, undermining the U.S. textile industry, which has already lost 27 plants in the last 20 months.
While NCTO supports President Trump’s efforts to tackle unfair trade practices, Glas urged the administration to consider alternative measures that would boost domestic textile manufacturing, strengthen regional trade partnerships, and close existing trade loopholes. One of the most pressing concerns highlighted by NCTO is the de minimis loophole, which allows shipments valued under a certain threshold to enter the U.S. duty-free. Glas explained that this loophole facilitates the entry of 4 million shipments per day, often including counterfeit and unethically made goods, as well as illicit fentanyl and other narcotics.
The NCTO welcomed Trump’s additional 10 percent tariffs on Chinese imports, which brings the total increase on China’s tariff rates to 20 percent this year. Glas further recommended imposing higher penalty tariffs on finished apparel and textile imports from China to prevent the undercutting of American manufacturers.
The organization stressed that raising tariffs without closing the de minimis loophole would only increase the volume of duty-free shipments, further harming U.S. manufacturers and exacerbating the fentanyl crisis. NCTO remains committed to working with the Trump administration to craft trade policies that protect U.S. textile jobs, foster investment, and ensure a fair and competitive trade environment.
