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The First 100 Days: A Blueprint for Congress and President-elect Trump to Revive U.S. Textile Manufacturing
Kimberly Glas
5 min read
As President-elect Donald Trump prepares to enter the Oval Office, he faces an historic opportunity to revive American manufacturing and bolster an industry that has long supported communities across the South, Midwest, and Northeast.
U.S. Textile manufacturers have weathered the Great Depression, the Great Recession, and the COVID-19 pandemic. They’ve endured historic economic upheavals often driven by rampant predatory trade practices, historically weak customs enforcement, and policies favoring cheap imports.
But today, America’s textile industry is facing a significant economic challenge, with over 21 textile plants closing in the last 18 months alone. Textile businesses that have existed for more than 100 years are idling or shutting down capacity and laying off hundreds of workers due to globally illegal trade practices and import fraud.
Yet, a unique opportunity lies in the hands of the incoming administration and Congress to take concrete steps to address these damaging factors and bolster this vital industry’s output and expansion.
Key actions include:
Closing the De Minimis Loophole
The “de minimis” provision in U.S. trade law allows imported goods valued at $800 or less to enter the U.S. duty-free and virtually uninspected daily, rewarding foreign companies that can sidestep regulations and tariffs and putting American manufacturers at a competitive disadvantage.
This loophole lets nearly 4 million duty-free, low-value packages into the U.S. daily; nearly half of these packages contain textile and apparel products, and China is by far the largest beneficiary.
President Trump should use his executive authorities to eliminate this dangerous loophole on Day 1 in office. His new administration should also work with Congress on a comprehensive de minimis solution to dramatically reduce these shipments and to help level the playing field for American manufacturers.
Strengthening Customs Enforcement for Trade Violations
The new administration must support and expand a Department of Homeland Security (DHS) textile and apparel enforcement plan launched in April to combat illegal trade practices.
Under the plan, Customs officials are cracking down on import fraud, forced labor violations under the Uyghur Forced Labor Prevention Act (UFLPA), and verifying compliance under free trade agreement rules with partner countries.
We need robust penalties for fraud to deter trade violators. This will help stabilize the U.S.-Western Hemisphere co-production chain and stop rewarding bad actors like China from gaining backdoor access to our free trade agreements.
A continued commitment to this enforcement plan is crucial to prevent ongoing import fraud through our free trade agreements, which will ultimately help stabilize the U.S. textile sector and the U.S.-Western Hemisphere co-production chain in the textile and apparel sector.
Increasing Section 301 Penalties on Chinese Imports & Countries that Don’t Play by the Rules
To counter China’s unfair trade practices, the Trump administration should increase existing Section 301 penalty tariffs on finished Chinese textiles and apparel, as well as tariffs on finished products from other countries that don’t play by the rules. This should be coupled with reasonable 301 tariff exclusions for inputs such as chemicals and textile machinery that cannot be sourced domestically, to help the domestic industry’s competitiveness.
Increasing these existing penalty tariffs, would help U.S. companies compete against artificially and illegally subsidized low-priced imports, often produced under unethical conditions.
Increasing penalty tariffs on finished goods must go hand in hand with closing the de minimis loophole or it will create a gaping duty-free loophole that will exacerbate the economic crisis the industry faces.
Passing the Miscellaneous Tariff Bill (MTB)
The Miscellaneous Tariff Bill (MTB) provides duty relief on inputs like acrylic and rayon that are unavailable domestically, helping U.S. manufacturers remain globally competitive.
Congress has failed to renew this legislation since 2020 and should take action to pass an MTB with retroactive benefits in a lame-duck session, giving manufacturers much-needed relief, enhancing their ability to compete.
Preserving the Yarn Forward Rule of Origin
The yarn forward rule, a core component of U.S. free trade agreements—particularly with our Western Hemisphere trade partners—requires yarn and fabric to be sourced in the U.S. or in the free trade region for apparel products to qualify for duty-free treatment when shipped back to the U.S. market. This rule is vital to preserving U.S. and regional supply chains and jobs and must be kept in place and effectively enforced.
Expanding “Buy American” Policies
The industry needs an immediate ramped up plan for domestic procurement of American-made textiles, from PPE to military items, to help backfill the national strategic stockpile and military reserves.
It is imperative the administration expand procurement for all U.S.-made products, including American flags, sheets and towels and scores of military products. Closing all loopholes in these statutes is needed to maximize benefits for the U.S. industry.
Passing Emergency Relief Funding & Tax Incentives for Domestic Manufacturing
The administration should work with Congress to immediately secure emergency relief funding through FEMA for textile companies hit hard by Hurricane Helene in September. Finally, the domestic industry needs bold tax incentives and a comprehensive tax reform package to encourage companies to build and expand facilities within the United States, reducing our reliance on imports and creating jobs.
Taken together, these policies and legislation will help sustain the U.S. textile industry, which remains integral to our national defense, public health infrastructure, and local economies across the country.
We look forward to working with President Trump’s team and Congress to help preserve, promote, and expand this vital sector. We will work across party lines to advance the interests of U.S. textile manufacturers and their workforce.
With the right policies in place, Congress and President Trump can reignite American manufacturing, create jobs, and chart a path forward for industries and communities that are integral to the U.S. economy and prosperity.
Kimberly Glas is the president and CEO of the National Council of Textile Organizations and former Commerce Deputy Assistant Secretary for Textiles, Consumer Goods and Materials.
