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08 July 2026

Daily Newsletter

08 July 2026

NCTO seeks tariffs on forced labour-related apparel imports from Asia

The NCTO has urged the USTR to impose Section 301 duties on apparel and textiles from China and Southeast Asian countries where forced labour is used in manufacturing.

Jangoulun Singsit July 08 2026

The NCTO, which represents the full breadth of the US textile industry, submitted its call for new tariffs as part of the USTR’s ongoing investigations into trade practices involving forced labour in global supply chains.

According to the NCTO, international textile and apparel supply chains continue to be influenced by forced labour, which it says puts US manufacturers at a “disadvantage”.

In written comments, the group stated: “Forced labour remains prevalent in global textile and apparel supply chains and unfairly disadvantages US textile manufacturers. The administration now has the opportunity to take meaningful actions in the investigations to revitalise the domestic textile industry and to defend it from unfair, predatory trade practices like forced labour.”

The NCTO also warned that the right approach could “potentially double” industry capacity, while the wrong solution would cost US jobs and cause “irreparable harm.”

Alongside the call for new duties, NCTO urged the USTR to ensure continued duty-free treatment for textiles and apparel that meet United States-Mexico-Canada Agreement (USMCA) and Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) requirements.

The organisation also addressed the textile mechanism proposed by the USTR as part of its forced labour investigations, opposing the current version and calling for specific reforms.

NCTO recommended excluding raw cotton from the mechanism, citing concerns that its inclusion would encourage offshoring. It also asked that textile manufacturing inputs and machinery unavailable domestically be exempted from additional duties to help maintain US competitiveness.

The recommendation is issued as NCTO president and CEO Kim Glas prepares to testify at the USTR hearings on Section 301 forced labour investigations on 9 July.

Recently, NCTO joined the American Apparel & Footwear Association, the United States Fashion Industry Association, and the US Industrial and Narrow Fabrics Institute in suggesting an alternative incentive programme for textile and apparel trade.

This programme, according to NCTO’s submission, aims to “reward the whole textile and apparel supply chain, including US cotton through a novel program developed by NCTO and brands and retailers to create over 56,000 jobs in the US.”

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