Please note: This press release has been updated, following news that President Trump has reached a deal with Canada to pause penalty tariffs on Canadian imports for 30 days.
The National Council of Textile Organizations (NCTO) has welcomed former President Donald Trump’s decision to pause the planned 25 per cent tariffs on imports from Mexico and Canada for one month. NCTO President and CEO Kim Glas stated that this move allows further negotiations while addressing critical concerns related to migration and fentanyl trafficking. She emphasized the importance of maintaining a stable trade relationship with North American partners.
Mexico is the largest export market for US textile fibers, yarns, and fabrics, while Canada ranks third. Together, they account for over half of US textile exports, amounting to $12.5 billion annually. Glas highlighted that the North American textile and apparel coproduction chain supports 500,000 US jobs and competes with China and other Asian markets.
While NCTO supports the tariff pause, it remains focused on addressing trade challenges with China. Glas welcomed Trump’s recent executive order imposing a 10 per cent penalty tariff on Chinese imports but urged for stronger measures. She called for significantly higher tariffs on finished apparel and textiles from China, emphasizing that penalties on China should never be lower than those on North American trade partners.
NCTO is also pushing for the elimination of the de minimis tariff waiver, which allows importers to bypass duties on billions of dollars worth of goods. Glas argued that this loophole facilitates the entry of illicit and forced-labor goods into the US market. Even if a trade resolution is reached with Mexico and Canada, she insisted that eliminating de minimis remains a priority.
Additionally, NCTO urged the administration to enhance customs enforcement against undervaluation, misclassification, and transshipment of textile goods. Glas called for harsher penalties and increased transparency to deter repeat trade violators. She also stressed the need to penalize countries that enable illegal Chinese imports to enter the US market.
According to NCTO, a robust tariff strategy would strengthen North American manufacturing, curb illegal migration, and generate significant revenue for the US Treasury. In fiscal year 2023, US textile tariff collections totaled $16.3 billion. Glas projected that this figure could double or triple with higher tariffs on China, stricter enforcement, and the elimination of de minimis loopholes.
She emphasized that China remains the dominant exporter of textiles and apparel to the US, accounting for over 26 per cent of total imports in 2023. China also benefits from the de minimis exemption more than any other country, avoiding billions in duties annually. Glas stressed that cracking down on Chinese trade violations would further bolster tariff revenue and restore manufacturing jobs.
The US textile industry has been hit hard by plant closures, losing 26 facilities in the past 18 months. Glas expressed NCTO’s commitment to working with the Trump administration to rebuild domestic manufacturing and strengthen the textile supply chain. She urged policymakers to adopt a trade strategy that prioritizes American jobs, fair competition, and long-term industry stability.
