The National Council of Textile Organizations (NCTO) has expressed concerns over the Trump administration’s decision to impose new tariffs on imports from Mexico and Canada, warning that the move could severely impact the North American textile and apparel supply chain.
The National Council of Textile Organizations (NCTO) warns that new US tariffs on Mexico and Canada threaten a key textile supply chain, impacting 1.6 million jobs in North America.
While supporting higher tariffs on China, NCTO urges closing the de minimis loophole to prevent illegal goods.
The organisation seeks balanced policies to protect US manufacturing and trade partnerships.
NCTO president and CEO Kim Glas issued a statement, cautioning that the tariffs could disrupt a critical supply chain supporting nearly 500,000 American jobs and 1.6 million jobs across North America. Glas highlighted the potential for destabilisation in the sector, linking the policy shift to economic concerns and broader geopolitical issues such as migration and the fentanyl crisis.
“The newly imposed tariffs on imports from Mexico and Canada threaten a crucial textile and apparel coproduction chain with our two valued trade partners. Destabilising this production chain coupled with the de minimis loophole will only exacerbate migration and the fentanyl crisis.”
The NCTO emphasised the importance of the United States-Mexico-Canada Agreement (USMCA) in supporting the domestic textile industry. The US textile sector exports $12.3 billion in goods to Mexico and Canada annually—53 per cent of total global exports—with materials returning as finished products to American markets under the trade agreement. The NCTO warned that disrupting this $20 billion two-way trade could inadvertently benefit China and other Asian manufacturers, whose supply chains operate under different regulatory frameworks.
“For these reasons, we are extremely concerned that the imposition of penalty tariffs on imports from our critical USMCA partners will only serve to benefit China and other Asian countries and harm the US textile industry, which has lost 27 plants in the past 20 months,” Glas stated.
While raising concerns over tariffs on Mexico and Canada, the NCTO welcomed President Trump’s move to increase penalties on Chinese imports, encouraging even higher tariffs specifically on finished apparel and textile products. The organisation claims these measures would help counteract China’s alleged unfair trade practices, including forced labour, state subsidies, and counterfeiting.
In addition to tariff adjustments, the NCTO urged the administration to close the de minimis loophole. The group argues that this loophole is being exploited to flood American markets with illicit goods, counterfeit textiles, and even illegal narcotics, including fentanyl.
“Raising tariffs on countries without closing this destructive loophole will only serve to drive more shipments to the duty-free de minimis loophole. Incentivising greater use of de minimis will further harm US manufacturers and exacerbate the fentanyl crisis,” Glas warned in the statement.
Despite concerns, the NCTO reaffirmed its willingness to work with the administration to shape trade policies that support US manufacturing and employment. The organisation urged a balanced approach that promotes domestic investment while protecting key trade relationships.
“This is a pivotal moment for the domestic textile industry, and we believe the right policies will preserve and bolster this vital manufacturing base and spur more job creation and investment,” Glas concluded.
Fibre2Fashion News Desk (HU)
