NCTO Applauds President Trump’s Pause on Penalty Tariffs for Mexico and Canada; Provides a Tariff Blueprint for Aggressively Confronting...

February 3, 2025

WASHINGTON, D.C. – 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 today from President and CEO Kim Glas regarding President Donald Trump’s announcement on social media that the U.S. is putting a one-month pause on tariffs on imports from Mexico and Canada, critical export markets for the U.S. textile industry.

Statement by NCTO President and CEO Kim Glas:

“We are grateful that President Trump has reached an agreement with both Mexico and Canada to pause the planned 25 percent penalty tariffs on their imports for one month while all parties continue to negotiate a deal to address his administration’s serious concerns. We fully support the President’s efforts to resolve issues related to migration and fentanyl poisoning as quickly as possible so that we can ensure a normalized trading relationship with Mexico and Canada.

“Mexico is the U.S. textile industry’s largest export market for American fibers, yarns and fabrics, while Canada ranks as the third largest market for these U.S. textiles. These countries serve as partners in the vital North American textile and apparel coproduction chain, helping to support 500,000 U.S. textile jobs nationwide.

“All three countries are signatories to the United States-Mexico-Canada Agreement (USMCA), which is by far the largest export region for U.S. textiles, representing $12.5 billion in combined U.S. exports – 53 percent of our total annual exports. This North American coproduction chain competes directly with China and Asia.

“As such we are very encouraged that President Trump has put a pause on tariffs on imports from Mexico and Canada. We realize this is not a permanent deal with either country, but we are encouraging all parties to reach one as expeditiously as possible.

“While we welcome President Trump’s plan to impose a 10 percent penalty tariff on imports from China outlined in his executive order on Saturday to mitigate China’s massive predatory and often illegal trade practices, we encourage higher penalty tariffs on China that are aggressively targeted to finished apparel and textiles.

“China’s unethical and illegal trade practices, including the egregious use of forced labor, have severely damaged the domestic textile industry for decades, costing hundreds of thousands of U.S. jobs.

“We encourage President Trump to aggressively confront China’s predatory trade practices to ensure a strong American manufacturing base by taking the following concrete steps:

  • Raise duties on China significantly higher than the proposed 10 percent on finished apparel and textiles, the goods that China predominantly ships to the U.S. market. Under no circumstances should penalty tariffs on China be lower than any applied to our North American trading partners.
  • Eliminate the de minimis tariff waiver exception for all countries, including Mexico and Canada. This dangerous loophole allows importers to avoid paying duties on billions of dollars of imported products and facilitates illegal and deadly products such as fentanyl and goods made by forced labor. Even with a resolution to any disputes with Mexico and Canada, it is critical to move forward with an elimination of de minimis for all countries and maintain this critical provision.
  • Intensify customs enforcement to stop illegal undervaluation, misclassification of imports and transshipment of apparel and textile goods through our free trade agreement regions, all of which are designed to avoid duties.
  • Maximize customs penalties for repeat trade violators and provide public transparency of repeat trade violators and blacklists.
  • Punish countries who are violating our trade laws serving as a backdoor for illegal, subsidized Chinese inputs and finished products into the U.S. marketplace.

“This is a tariff blueprint not only for textiles but for all U.S. manufacturing. It values the North American coproduction chain that is responsible for millions of U.S. manufacturing jobs and billions in two-way trade. Moreover, it targets the true culprit in the international trade arena—China—which has utilized state sponsored subsidies, dumping and other illegal pricing schemes, and unethical labor and environmental practices to destroy global competitors and cause massive manufacturing investment and employment to concentrate in China.

“By ensuring stability in our hemisphere, this plan will also help to mitigate the serious problem of illegal migration into the United States.

“In addition to dealing with the massive trade imbalances President Trump is seeking to rectify, this plan will raise billions in additional revenue for the U.S. Treasury. In the textile sector alone, the U.S. Treasury collected $16.3 billion in duties during fiscal year 2023. That figure could easily be doubled or possibly tripled due to the fact that:

  • A higher penalty tariff on China would raise billions in additional revenue as China is the single largest exporter of textiles and apparel to our market representing over 26% of total U.S. textile and apparel imports by value in 2023.
  • China currently avoids billions in U.S. duties as the largest single source of de minimis shipments to the United States that currently pay no normal or Section 301 duties.
  • Improved enforcement would substantially bolster tariff collections as China is a notorious perpetrator of illegal tariff avoidance schemes such as dumping, product undervaluation and transshipment through duty free regions.

“Decisions related to this tariff plan are critical to the U.S. textile industry, which has lost 26 plants in the last 18 months. Further, if these concepts are applied to all manufacturing sectors, tariff revenue would grow exponentially.

“We look forward to working with President Trump and his administration on these critical issues in order to bring jobs back to the U.S. and build a stronger, more vibrant domestic supply chain in our sector and across all of domestic manufacturing as a whole.”

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

  • U.S. employment in the textile 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.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Welcomes President Trump’s Executive Order on Trade Directing Federal Agencies to Investigate the Impact of Unfair Trade Practices...

January 21, 2025

WASHINGTON, D.C. – 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 today from President and CEO Kim Glas regarding President Donald Trump’s executive order, the “America First Trade Policy.”

Statement by NCTO President and CEO Kim Glas:

“We welcome President Trump’s executive order directing federal agencies to conduct a comprehensive review of the devastating impact of unfair trade practices by China and other countries that have undermined U.S. textile manufacturers, the broader manufacturing base, and the economy.

“President Trump’s order directs agencies to examine not only the effects of these practices and their contribution to the U.S. trade deficit but also to propose solutions such as penalty tariffs and de minimis reform to mitigate the harm to critical domestic industries.

“This action comes at a pivotal moment for the U.S. textile industry, a vital supplier of goods to the U.S. military and an employer of over 500,000 American workers. For too long, import fraud, trade crimes, and the evasion of U.S. bans on forced labor goods and duties through the de minimis loophole in trade law have severely damaged strategic domestic manufacturing industries.

“In the past several months alone, the U.S. textile industry has seen 26 plant closures and thousands of layoffs.

“Notably, the executive order includes a directive addressing the de minimis provision, instructing relevant agencies to ‘recommend modifications as warranted to protect both the revenue of the United States and the public health by preventing unlawful importations.’

“This directive marks an important and long overdue step toward commonsense reform of an outdated trade provision that has caused significant damage to the U.S. textile industry. The de minimis loophole facilitates the entry of approximately 4 million low-value shipments daily, often bypassing inspection and duties. This loophole benefits Chinese e-commerce platforms, importers, and tariff evaders, while harming U.S. manufacturers.

“Given the overwhelming scale of the problem and the challenges faced by U.S. Customs and Border Protection in enforcing trade laws amid this flood of de minimis packages, we urge President Trump to prioritize this particular issue and take decisive action as soon as feasible to eliminate the de minimis loophole through executive order.

“We also commend the President’s directive to review the establishment of an External Review Service to collect tariffs and other taxes on foreign entities. Such measures would serve as a deterrent to tariff evasion and provide funding for trade enforcement priorities in the new administration. NCTO has long called for expansive stepped-up customs enforcement as tariff evasion has hurt our industry, especially facing the flood of dumped products and goods falsely claiming duty-free benefits through our network of free trade agreements.

While not part of the executive order announced Monday, President Trump separately threatened to impose 25 percent tariffs on imports from Mexico and Canada on February 1. Imposing tariffs on Mexican and Canadian imported goods that qualify for duty-free treatment under the United States-Mexico-Canada Agreement (USMCA) would undermine a vibrant coproduction chain, which is vital to the U.S. textile industry and supports thousands of jobs here and in Mexico and Canada.

“Finally, we look forward to working closely with the President and his administration to implement much needed reforms to U.S. trade policy. Policies such as penalty tariffs on China and comprehensive de minimis reform are essential to addressing the actions of predatory exporters and bad actors that threaten our strategic industry, displace our workers, damage our economy and harm U.S. consumers.”

###

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

  • U.S. employment in the textile 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.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Calls Customs’ Proposed Rule Limiting De Minimis Shipments a Step Forward; Urges Incoming Trump Administration to Take Comprehensive...

January 17, 2025

WASHINGTON, D.C. – 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:

“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. “

###

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

  • U.S. employment in the textile 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.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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National Defense Authorization Act Aims to Expand Government Procurement of American-Made Goods in Boost for U.S. Textile Industry

WASHINGTON, D.C.—The National Council of Textile Organizations (NCTO), spanning the entire spectrum of U.S. textiles from fiber to finished sewn products, commends the House of Representatives for passing the Fiscal Year 2025 National Defense Authorization Act (NDAA) today.

The legislation helps preserve the Berry Amendment supply chain and authorizes the Department of Defense (DOD) to take steps to build up the defense textile stockpile and directs DOD to be more transparent and disclose all waivers submitted for the procurement of defense textiles not made in the United States.

In addition to supporting and expanding the critical Berry Amendment, which requires the Department of Defense to purchase 100% U.S. made textiles and clothing, the legislation includes two new key provisions important to the domestic textile industry:

  • Authorizes Secretary of Defense to establish pre-positioned stocks of defense textiles needed to support contingency operations, while requiring the secretary to develop a plan to mitigate delays in meeting the demand for a ramp up in defense textile articles.
  • Increases public transparency for domestic nonavailability determinations (DNADS) on an annual basis, while requiring the Under Secretary of Defense for Acquisition and Sustainment to develop and maintain a list of DNADs and share it with Congress and industry.

“We applaud the House for passing the FY 2025 NDAA today and urge the Senate to pass this critical legislation this year,” said NCTO President and CEO Kim Glas. “This legislation contains provisions that support a strong domestic textile and apparel manufacturing industrial base and aims to expand procurement of American-made defense-related textiles. The Berry Amendment ensures that there is a stable and viable domestic supply chain for these critical defense materials

“The American textile and apparel industry is a key strategic contributor to our national defense and supplies over 8,000 products a year to our men and women in uniform. U.S. textile mills provide a secure supply chain for the highest quality goods that our armed forces demand, eliminating the need to rely on countries like China for critical military products such as vital uniforms and equipment.

“The U.S. textile industry provides high-tech, functional components for the U.S. government, including more than $1.8 billion worth of vital uniforms and equipment for our armed forces annually. It is vital to America’s national security that the U.S. military maintain the ability to source high-quality, innovative textile materials, apparel, and personal equipment from a vibrant U.S. textile industrial base.”

###

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

  • U.S. employment in the textile 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

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Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org  |  202.684.3091

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NCTO Urgently Calls on President Biden to Intervene in the Port Strike Exacerbating the Impact on the U.S. Textile...

October 3, 2024

WASHINGTON, D.C.—National Council of Textile Organizations (NCTO) President and CEO Kim Glas sent a letter to President Joseph Biden today asking his administration to intervene in the East and Gulf Coast ports strike that is exacerbating the economic distress facing the U.S. textile industry, which has been hit hard by Hurricane Helene.

See the full letter here.

“We respectfully ask that you urge the parties to reach a reasonable, fair, and expeditious conclusion given your role as a key negotiator and intermediary. The strike at East Coast and Gulf ports threatens not only our domestic competitiveness but also that of the broader Western Hemisphere textile and apparel co-production chain, which supports 2 million workers and $40 billion in annual two-way trade,” the letter reads.

Seventy percent of U.S. textile exports are shipped to the industry’s Western Hemisphere free trade agreement partners, who in turn produce finished apparel and home textile products for the U.S. market. 

“The strike comes at a particularly difficult time when American textile manufacturers are reeling from the destruction of Hurricane Helene. Several companies have been hard hit as a result of this tragedy—some with severe structural damage and others with idled plants” the letter continues. “The industry’s main concern right now is prioritizing the safety and well-being of its employees and their families.  This strike couldn’t come at a worse time as the industry has seen the closure of 21 plants in the last 18 months. We appreciate your leadership in helping mitigate supply chain challenges, as well as your work in support of working families and your work on behalf of the U.S. textile industry. We ask for your urgent assistance in helping to end these widespread supply chain disruptions so that our industry can have a fighting chance to regain its footing amid other serious and ongoing challenges.”

###

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

  • U.S. employment in the textile 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.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Calls White House Announcement on Actions Limiting De Minimis a Step Forward; Calls for Comprehensive Action to Address...

September 13, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement on today’s White House announcement and fact sheet that outlined executive actions to curtail de minimis shipments in addition to other key measures on enforcement and domestic procurement.

Statement by NCTO President and CEO Kim Glas:

“We appreciate the administration’s actions announced today, which represent a step forward in helping mitigate the impact of the de minimis provision.

“We have called on the administration to use its existing executive authorities to limit the severe damage to our industry created by the de minimis loophole. Today, the administration announced rulemaking to limit de minimis treatment for all imported products subject to U.S. trade remedies and penalties, including the Section 301 tariffs. This is an important, common-sense reform and critical first step. We amplify the need to expedite rulemaking to the fullest extent possible and appreciate their strong engagement with our industry. The administration also announced requirements for additional information on de minimis shipments and other enforcement measures.

“Further, the administration underscored the need for a comprehensive solution beyond this action announced today – underscoring the magnitude of the problem, and the inability to effectively enforce our laws with the flood of de minimis packages coming in daily and the need for an urgent solution. We share that same sense of urgency. We are calling on Congress and the administration to work together to immediately close this disastrous loophole once and for all. 

“The U.S. textile industry, a strategic supplier of goods to the U.S. military and PPE is experiencing severe demand destruction fueled by de minimis shipments flooding our market with cheap, illegal imports because of this nonsensical outdated trade loophole. De minimis has facilitated illegal and forced labor products to our doorsteps at the cost of American jobs and our manufacturing sector.

“The flood of boxes coming into the United States under an outdated 1930s trade provision rewards Chinese e-commerce platforms and cheaters with a free trade agreement. It makes detecting illegal products effectively impossible. De minimis hides a black market of goods and puts people and consumers at risk. Half of the 4 million de minimis boxes a day are estimated to be textile and apparel goods – which is why we greatly appreciate the administration calling for the global exclusion of trade sensitive items – including textiles and apparel – from de minimis treatment given the sensitivity of the sector and rampant cheating. If enacted and effectively enforced, this will help significantly bring down the volume of these goods to better detect fentanyl and other illicit and dangerous products and help U.S. Customs and Border Protection (CBP) do its important work in the field with our law enforcement officers. Time is of the essence because there is so much at stake.

“We also underscore the need for Congress and the administration to immediately eliminate this disastrous loophole once and for all in the coming weeks. We will continue pressing for comprehensive reform given the urgency of the crisis – not just for our industry which has lost 19 plants this last year – but for all industries and consumers and families impacted by this loophole.

“Finally, we applaud the administration’s directive on developing a plan for immediate textile and apparel procurement. This is critical to our industry, and we stand ready to supply more goods to the U.S. government. We also appreciate the administration’s stepped-up textile and apparel enforcement efforts over the last few months and their ongoing engagement with this critical industry. Today they announced their efforts to date.  We want to thank Department of Homeland Security Secretary Alejandro Mayorkas, DHS, and the CBP team for prioritizing this at such a critical time.”

###

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

  • U.S. employment in the textile 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.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

 |  202.281.9305

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NCTO Issues Statement on the Passing of Rep. Bill Pascrell (D-NJ), Co-Chair of the House Textile Caucus & a...

August 21, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today on news of the passing of Congressman Bill Pascrell (D-NJ) this morning.

Statement by NCTO President and CEO Kim Glas:

“The entire U.S. textile industry is mourning the loss of Congressman Bill Pascrell (D-NJ), a true leader and advocate for critical manufacturing policies aimed at bolstering the domestic supply chain and confronting ongoing threats from predatory trade practices.

“We commend his significant contributions – not just to the U.S. domestic industry—but for American manufacturers and workers everywhere.

“Rep. Pascrell had served as co-chair of the House Textile Caucus with Rep. Patrick McHenry (R-NC) since 2013 and was an ardent fighter for the U.S. textile industry and beyond.”

In April, Congressman Pascrell championed a bill titled the Import Security and Fairness Act led by Rep. Earl Blumenauer (D-OR) that would exclude all Chinese imports from de minimis treatment, as highlighted in our blog post on a House Ways & Means markup.

He also penned an op-ed with Congressman McHenry highlighting the urgent need to drive investment and for onshoring and nearshoring textile and apparel production and to not weaken the critical U.S. and Central America  Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

In addition, he co-sponsored legislation aimed at strengthening the American PPE supply chain which would expand the Berry Amendment to nearly all federal purchases of PPE.

“As is evidenced above, Congressman Pascrell took on every policy battle in support of U.S. textiles and manufacturing in general as an unwavering supporter of maintaining and expanding a vital domestic manufacturing chain.  He worked closely with Rep. McHenry on critical textile issues to advance the cause for our domestic industry and its workforce.

“He will be missed deeply by the industry and to all who knew him. We extend our gratitude to a manufacturing warrior and express our condolences to the entire Pascrell family and his staff and team.”

###

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

  • U.S. employment in the textile 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.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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NCTO Applauds Comprehensive Bipartisan Legislation Closing the De Minimis Loophole to Majority of Textile and Apparel Imports

Aug. 8, 2024

WASHINGTON, D.C. – National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today welcoming the introduction of the bipartisan “FIGHTING for America Act, a bill that would eliminate de minimis exemptions for import-sensitive products and goods subject to trade remedies, including the majority of textile and apparel imports, while helping staunch the flow of millions of low value duty-free shipments entering the United States daily.

Statement by NCTO President and CEO Kim Glas:

“We commend Senate Finance Committee Chairman Ron Wyden (D-OR), and Senators Sherrod Brown (D-OH), Bob Casey (D-PA), Susan Collins (R-ME), and Cynthia Lummis (R-WY) for their leadership and support for this bipartisan legislation that would tighten the rules for the entry of millions of imported packages coming through the de minimis loophole each day and help level the playing field for domestic textile and apparel manufacturers severely harmed by the onslaught of these shipments.

“This bill eliminates de minimis for the most import-sensitive products and goods subject to trade remedies, including the vast majority of textile and apparel imports from China and the rest of the world. It is a major step in the right direction toward closing the loophole. De minimis shipments have grown exponentially due to the explosion of e-commerce and the growth of companies like Shein and Temu that have built their business models around this duty-free loophole. As a result, the U.S. market has been inundated with a flood of low value, subsidized and often illegal and tainted imports that are endangering U.S. consumers and undermining the U.S. textile and apparel production chain.

“We believe Senator Wyden’s legislation will go a long way toward thwarting bad actors who have been profiting from this unchecked gateway by sending in goods made with forced labor, counterfeits, toxic goods, and illicit narcotics.

“This bill is the most comprehensive approach to de minimis reform to date. It would not only close de minimis to the vast majority of textile and apparel imports, but also impose new penalties for violations, require additional data reporting on all de minimis packages, and impose small customs user fees on packages. We are encouraged by this strong legislative approach and believe it will help shield and support the vital domestic textile and apparel manufacturing supply chain that employs more than 501,000 workers and produces $64.8 billion in output.”

###

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

  • U.S. employment in the textile 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.

DOWNLOAD RELEASE

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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U.S. Textile Executives Highlight Industry’s Importance; Underscore Challenges & Policy Priorities During Visit by USTR’s Chief Textiles and Apparel...

June 12, 2024

WASHINGTON, DC – Several National Council of Textile Organizations (NCTO) member companies hosted the newly named U.S. Trade Representative’s (USTR) Chief Textiles and Apparel Negotiator Katherine White at their North Carolina facilities Tuesday and Wednesday as industry leaders provided insights into their state-of-the-art manufacturing facilities and the impact of trade policies on this vital domestic supply chain and local communities.

During White’s inaugural visit to a key hub of American textile manufacturing, U.S. textile executives spanning the fiber, yarn, fabric and finished product textile and apparel industry demonstrated he industry’s innovations and advances in U.S. manufacturing and illustrated the industry’s important contribution to the U.S. economy.

White’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $64.8 billion in output in 2023 and employed more than 500,000 workers. The industry is a key contributor to our national defense and supplies over 8,000 products a year to the U.S. military as well as critical PPE items for national health and safety.

However, the industry is facing severe economic headwinds due to a multitude of economic factors, supercharged predatory trade practices by foreign competitors and insufficient enforcement of trade laws and free trade agreements.

Textile leaders helped provide context about the state of the industry and highlighted the opportunities and challenges confronting it. In total, White visited six U.S. textile plants, including American & Efird, Parkdale Mills/U.S. Cotton, TSG Finishing, Shuford Yarns, Schneider Mills, and Unifi.

White also participated in an industry roundtable at Gaston College Textile Technology Center, at which executives discussed the competitiveness of the domestic industry and outlined urgent priority issues in Washington.

The industry continued to press for: increasing Section 301 China tariffs on finished textile and apparel imports; closing the de minimis loophole; expanding the Western Hemisphere co-production chain and maintaining the yarn forward rule of origin, stepped up customs enforcement of textile and free trade agreement enforcement and penalties, and ways to support domestic supply chains through Buy American and Berry Amendment policies that help to onshore production, spur investment, maintain the safety and security of  U.S. armed forces and generate new jobs.

Chief Textiles and Apparel Negotiator White said, “I want to thank NCTO President and CEO Kim Glas and NCTO member companies for hosting USTR in North Carolina for a tour of domestic textile manufacturing facilities. During the visit we heard from textile industry leaders about the challenges they face in their day-to-day operations and opportunities to enhance the competitiveness and resilience of the textiles sector. President Biden and Ambassador Tai are committed to advancing trade policies that level the playing field for American workers and industries, so they can compete in today’s global economy.”

NCTO President and CEO Kim Glas said, “We want to sincerely thank Katie, who is taking on the role as chief textiles and apparel negotiator at a critical time for this industry. We appreciate her first visit in the new role is to see and meet with our industry first-hand. The U.S. textile industry is one of the most dynamic, innovative industries in the U.S. economy and our co-production chain with our Western Hemisphere trade partners is essential. Trade policies are critical to this manufacturing sector and workforce.”

“Predatory trade practices employed by China and other countries are harming the domestic textile supply chain and our Western Hemisphere trade partners, and our industry is calling for urgent action by our government to address them head on. We are in an urgent economic situation where these serious issues the industry is facing need to be resolved immediately. We believe USTR’s development of supply chain resilience policies is a strong step in the right direction for helping secure the U.S. textile supply chain into the future. We look forward to working closely with Katie and Ambassador Katherine Tai to advance policies that bolster our domestic production.”

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

  • U.S. employment in the textile 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.

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CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org  |  202.281.9305

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NCTO Issues Statement Commending Department of Homeland Security for Significantly Expanding the UFLPA Entity List & Stepping Up Enforcement...

May 16, 2024

WASHINGTON, DC—National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today praising the U.S. Department of Homeland Security (DHS) for adding 26 Chinese textile companies to the Uyghur forced Labor Prevention Act (UFLPA) Entity List, bringing the total number of entities whose goods are banned from being imported into the U.S. market to 65.  

Statement by NCTO President and CEO Kim Glas

“We commend DHS for significantly expanding the critical UFLPA Entity List and stepping up enforcement of entities that are egregiously trading in slave labor cotton sourced from Xinjiang, China. Slave labor cotton as well as man-made fibers produced in Xinjiang are feeding into clothing made in China and numerous other countries around the world that is destined for the U.S. market, severely undermining U.S. domestic producers.

“Today’s announcement marks an important step forward in following through on anti-forced labor legislation and sends a strong message to known offenders, enterprises and governments that the U.S. government is increasing its enforcement activities and dedication to cracking down on imports of goods made with forced labor.

“Chinese cotton produced with forced labor in Xinjiang is flooding the global marketplace and entering the U.S. market as downstream products. Some 76 percent of all Chinese cotton products contain Xinjiang cotton, which leads to textiles and apparel made with forced labor bleeding into global supply chains, most notably in Asia but also in our free trade agreement regions.  The scourge of slave labor in Xinjiang involves not only cotton but extends to man-made fiber products as well.

“As a result, American textile plants have been forced to close and lay off workers. We have lost 17 textile plants in the past several months due in part to these illegal trade practices that are undermining the industry’s competitiveness.

“While the expanded Entity List is a positive step to increasing enforcement of goods made with forced labor, the list should include more companies outside of China that may be trading in goods and inputs made with forced labor.

“The U.S. also needs to close the de minimis loophole that is facilitating imported slave labor goods, toxic products and illicit fentanyl and other narcotics. Since the vast majority of de minimis imports are uninspected by CBP, this mechanism allows China and others to ship goods with impunity directly to U.S. consumers that violate our slave labor prohibitions and skirt consumer safety standards. 

“In addition, we have recommended to DHS and Customs and Border Protection (CBP) other essential actions to mitigate the economic harm and to maximize civil and criminal penalties against trade predators.

They include:

  • Increased UFLPA enforcement and inspections of imports to prevent textile and apparel goods from entering our market, including in the de minimis environment
  • Immediate expansion of isotopic testing of suspected shipments and other targeting tools
  • Ramped up textile and apparel enforcement with regard to the Western Hemisphere trade partner countries, including onsite production verification visits and other targeting measures to enforce rules of origin and address backdoor UFLPA violations

“The U.S. textile industry is experiencing one of the worst downturns in its history. We welcome today’s actions as part of the robust DHS textile enforcement plan that Secretary Alejandro Mayorkas has announced and begun to implement. It is critical to have all these actions in place to act as an effective deterrent to China and other entities that are harming our domestic manufacturing base.”

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

  • U.S. employment in the textile 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.

CONTACT:

Kristi Ellis

Vice President, Communications

National Council of Textile Organizations

kellis@ncto.org |  202.281.9305

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