The U.S. textile industry is celebrating a major policy shift following the closure of the de minimis import loophole, a move that has long been demanded by domestic manufacturers. The decision, enacted by the Trump administration, comes in response to mounting pressure from industry leaders and follows the shuttering of 28 textile mills over the past 22 months.
National Council of Textile Organizations (NCTO) President and CEO Kim Glas strongly welcomed the move, stating:
“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 US market duty-free and largely unchecked for years.”
The de minimis rule previously allowed imports valued at $800 or less to enter the United States without duties or rigorous inspection. This led to an exponential rise in shipments, increasing by over 600% — from 139 million in 2015 to 1.36 billion in 2024 — and heavily contributed to market saturation by low-cost fast fashion items, especially from Chinese platforms like Shein and Temu.
With the new changes, all commercial shipments from China and Hong Kong valued at $800 or less will now be subject to standard customs duties. Additionally, postal shipments in this category will incur a 30% duty or $25 per item, whichever is higher — increasing to $50 per item after June 1.
Industry Applauds Move as a Lifeline
Kim Glas emphasized that the textile industry is vital to U.S. national security, producing over 8,000 military-use products and supporting 471,000 jobs nationwide.
“Today’s action is an important step forward to help rebalance the playing field for American manufacturers, preserve good-paying jobs, and spur more domestic investment and innovation,” she added.
“We urge Congress and the administration to end de minimis for all countries to prevent circumvention and ensure Chinese products can’t enter through third nations.”
Other industry leaders echoed this sentiment:
Anderson Warlick, CEO of Parkdale Mills, said:
Eliminating de minimis for products from China is essential. I urge the administration to apply the same standard to all imports so U.S. textile manufacturers can compete fairly.
Amy Bircher Bruyn, CEO of MMI Textiles, noted:
“The loophole has wreaked havoc on the U.S. textile sector by enabling duty-free access for massive volumes of fast fashion, largely from China. This undercuts manufacturers who are critical to U.S. industrial resilience.”
Ron Sytz, CEO of Beverly Knits, added:
“This action brings relief to our company and community. It gives us a level playing field, allowing us to expand, invest, and hire more workers here in the U.S.”
Impact on Retailers and What’s Next
With the policy shift, platforms like Shein and Temu have already indicated pending price increases in response to the added duties, signaling a broader shift in global e-commerce pricing strategies.
The closure of the loophole is being hailed as a turning point for U.S. manufacturing competitiveness, though textile leaders continue to push for comprehensive reform across all countries, not just China.
As Glas concluded, “The U.S. textile industry stands ready to assist the administration in fully implementing this critical provision and restoring balance to global trade.”
