The National Council of Textile Organizations (NCTO) has voiced significant concerns about the Trump administration’s decision to impose new tariffs on imports from Mexico and Canada. The group has warned that this policy could jeopardize the North American textile and apparel supply chain, which underpins a substantial number of jobs across the region.
Kim Glas, NCTO’s president and CEO, issued a statement emphasizing the potential repercussions of the tariffs. She pointed out that the move risks destabilizing an essential supply chain that supports nearly 500,000 jobs in the United States and 1.6 million jobs across North America, linking the economic instability to wider 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,” Glas remarked.
The NCTO underscored the critical role of the United States-Mexico-Canada Agreement (USMCA) in fostering the success of the domestic textile industry. Under the agreement, the US textile sector exports $12.3 billion worth of goods annually to Mexico and Canada, representing 53 percent of its total global exports. These materials are frequently returned as finished products to US markets, creating a thriving $20 billion two-way trade. The NCTO cautioned that this delicate balance could be upended, inadvertently giving an edge to competitors like China and other Asian countries with less stringent regulatory landscapes.
“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 strongly opposing tariffs on Mexico and Canada, the NCTO expressed support for President Trump’s decision to increase penalties on imports from China. The group encouraged even higher tariffs specifically targeting finished textile and apparel products, arguing that such measures would help combat China’s alleged unfair trade practices, including forced labor, state subsidies, and counterfeiting.
In addition to tariff adjustments, the NCTO called on the administration to address the de minimis loophole. According to the organization, this loophole is being exploited to flood the US market with counterfeit textiles, illicit goods, and even illegal narcotics like 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.
Despite its reservations, the NCTO reiterated its commitment to working with the administration to craft trade policies that bolster US manufacturing and protect American jobs. The organization advocated for a balanced strategy that safeguards key trade relationships while encouraging domestic investment.
“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.
