U.S. Textile Industry Concerned Over New Tariff Clause
The Trump Administration introduced new tariffs on imports from 60 countries due to concerns over forced labor, but the National Council of Textile Organizations (NCTO) expressed concern that a textile mechanism clause will negatively impact U.S. manufacturers. The clause offers relief from Section 301 duties for textile and apparel imports from Bangladesh, Cambodia, Indonesia, and Malaysia based on their importation of U.S. cotton through tariff-rate quotas. The NCTO criticized the administration for not exempting essential textile inputs and machinery that are unavailable domestically, which it argues is crucial to shifting supply chains away from countries with forced labor issues. The organization highlighted that Asian suppliers have increased market share in the U.S., while Western Hemisphere exports have declined. It warned that removing Section 301 duties on apparel imports from Asia will further harm domestic textile manufacturers and reduce opportunities for U.S. cotton. The NCTO also emphasized the need to strengthen enforcement of the Uyghur Forced Labor Prevention Act, as it has weakened over time. The group proposed an alternative mechanism that could boost U.S. textile exports while addressing forced labor concerns.
Topics: forced labor international trade tariffs textile industry USTR