For the first time in recent years, leading U.S. textile manufacturers, apparel brands and retailers have jointly proposed a new trade incentive program aimed at strengthening domestic manufacturing, expanding exports and reinforcing textile and apparel supply chains across the Western Hemisphere.
The proposal was submitted to the Office of the United States Trade Representative as part of ongoing consultations regarding proposed Section 301 actions on goods produced with forced labor.
Tariff Credits Linked to U.S.-Made Textiles
Under the proposed initiative, apparel brands and retailers would be able to earn tariff credits by purchasing U.S.-made textiles and qualifying apparel products manufactured in selected Western Hemisphere countries that maintain free trade agreements with the United States.
These credits could then be used to offset potential Section 301 tariffs on eligible imports, creating an incentive to source more products from regional supply chains while supporting American textile production.
According to the joint submission, the program is intended to encourage reshoring, diversify sourcing and improve supply chain resilience amid increasing geopolitical uncertainty and global trade disruptions.
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Industry Sees Significant Economic Benefits
The participating organizations estimate that the proposed policy could generate more than 56,000 new jobs in the United States while attracting billions of dollars in new domestic investment.
They also project that the initiative could double U.S. textile exports to the Western Hemisphere, increasing annual export value to approximately US$29 billion.
The groups believe stronger export demand would help reopen manufacturing facilities, stimulate investment in new production capacity and support the broader U.S. textile supply chain, including domestic cotton producers.
Unified Industry Support
The proposal marks a rare consensus among organizations that have historically held different positions on international trade policy.
The joint submission was filed by:
- National Council of Textile Organizations
- American Apparel & Footwear Association
- United States Fashion Industry Association
- U.S. Industrial and Narrow Fabrics Institute
The proposal was developed in response to a textile trade mechanism being considered by the USTR during its ongoing Section 301 investigations into forced labor-related trade practices.
Industry leaders argue that the incentive program would strengthen the competitiveness of the U.S. textile and apparel sector while reinforcing regional manufacturing partnerships throughout the Americas.
