In comments submitted to the US Trade Representative’s (USTR) office, NCTO called for measures to preserve the Western Hemisphere co-production chain, improve customs enforcement, and address trade practices it says “threaten domestic jobs and supply chains.”
NCTO requested that USMCA-qualifying trade continue to be exempt from International Emergency Economic Powers Act (IEEPA) tariffs, which were imposed to address illegal fentanyl trafficking and migration.
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In addition, the organisation asked for equivalent exemptions for trade under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which is currently subject to reciprocal IEEPA tariffs.
According to NCTO, the US textile sector exported $12.3bn worth of goods, representing 53% of its total global exports, to Mexico and Canada. This makes the two countries the largest overseas markets for American textile producers.
The components exported to these countries often return to the US as finished products through provisions in the USMCA, contributing to $20bn in two-way trade that supports domestic investment and employment.
In a statement, NCTO said: “We welcome the Trump administration’s efforts to combat the highly aggressive predatory trade practices facing our industry to offset decades-long inequities and to establish a more balanced trade environment for US textile and apparel manufacturers.
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By GlobalData“We ask the administration not to lose sight of the valuable trade partnerships we have with countries in the Western Hemisphere, on which the US textile industry depends. We also hope the administration will…address issues of consequence to our industry, including harmful exceptions to yarn forward and increased customs cooperation among the USMCA parties to confront unfair trade practices.”
NCTO’s two focus areas for improving USMCA:
1. Preserving and strengthening yarn-forward rule of origin by limiting harmful exceptions to the rule, such as tariff preference levels and single transformation rules that weaken regional supply chains and disadvantage U.S. manufacturers.
2. Enhancing customs enforcement cooperation, including trade data reviews and public reporting of data, creation of a public blacklist of repeat offenders of trade laws, and intensifying punishment of customs offenders in all three countries.
Based in Washington, D.C., NCTO represents a broad range of US textile stakeholders from fibre production through to finished goods.
The US textile supply chain employed 471,046 workers in 2024. That year, shipments in textiles and apparel reached $63.9bn, with exports valued at $28bn.
