The National Council of Textile Organizations (NCTO) has welcomed former President Donald Trump’s decision to temporarily suspend 25 percent penalty tariffs on qualifying imports from Mexico and Canada under the US-Mexico-Canada Agreement (USMCA).

NCTO President and CEO Kim Glas expressed appreciation for the pause, emphasizing the need for a swift resolution to ongoing trade negotiations linked to immigration and fentanyl trafficking concerns.

Glas highlighted the critical role of USMCA in supporting a robust North American textile supply chain, which sustains 1.6 million jobs and facilitates $20 billion in two-way trade. The agreement enables US textile exports, totaling $12.5 billion annually, to be transformed into finished products in Mexico and Canada before returning to the US. This interconnected system strengthens domestic manufacturing and reduces reliance on Asian supply chains.

Imposing tariffs on compliant USMCA imports, Glas warned, would harm the US textile sector, weaken North American trade partnerships, and disrupt military supply chains. She urged the administration to pursue a balanced approach that exempts qualifying USMCA goods from penalty tariffs and addresses the de minimis loophole, which allows tariff-free low-value shipments that disadvantage domestic producers.

NCTO reaffirmed its commitment to working with Trump’s administration on trade policies that bolster domestic manufacturing. Glas stressed the importance of preserving the integrity of the North American supply chain, ensuring US competitiveness, and fostering a stronger domestic industry.