The National Council of Textile Organizations (NCTO) has raised concerns over the Trump administration’s new tariffs, warning that they could destabilize North America’s textile supply chain. The administration imposed 25 percent tariffs on imports from Mexico and Canada, alongside an additional 10 percent on Chinese imports.

NCTO President and CEO Kim Glas stated that these tariffs threaten a critical US-Mexico-Canada textile and apparel coproduction chain that sustains nearly 500,000 American jobs and 1.6 million across North America. She cautioned that disrupting this chain, combined with the existing de minimis loophole, could worsen migration issues and the fentanyl crisis.

The US textile industry exports $12.3 billion worth of products to Mexico and Canada annually, accounting for 53 percent of total global textile exports. Under the United States-Mexico-Canada Agreement (USMCA), these exports return as finished products, supporting a $20 billion two-way trade. Glas warned that imposing tariffs on these key trade partners would ultimately benefit China and other Asian competitors.

While opposing tariffs on Mexico and Canada, NCTO welcomed the additional 10 percent tariff on China, bringing the total penalty tariff on Chinese imports to 20 percent this year. Glas urged even higher tariffs specifically on finished apparel and textiles from China.

Additionally, the NCTO called for closing the de minimis loophole, which allows 4 million daily shipments of duty-free goods into the US Glas argued that this loophole facilitates the import of illegal and unsafe products, including fentanyl, undermining U.S. manufacturers.

NCTO pledged to work with the administration to develop trade policies that strengthen the domestic textile industry, protect jobs, and encourage regional investment.