US Textile and Apparel Groups Unite to Push New Trade Incentive Programme to Boost Domestic Manufacturing
In a rare show of unity, leading US textile manufacturers, apparel brands, retailers, and fabric industry organisations have jointly urged the US government to introduce a new textile and apparel trade incentive programme aimed at strengthening domestic manufacturing and expanding exports across the Western Hemisphere.
The proposal has been submitted to the Office of the United States Trade Representative (USTR) by four major industry bodies: the National Council of Textile Organizations (NCTO), the American Apparel & Footwear Association (AAFA), the United States Fashion Industry Association (USFIA), and the US Industrial and Narrow Fabrics Institute (USINFI).
The initiative represents a significant milestone for the US textile and apparel sector, as these organisations—often known for holding differing views on trade policy—have come together to support a common strategy designed to enhance the competitiveness of the American textile industry.
Incentive Programme Aims to Strengthen Supply Chains
According to the joint proposal, the new programme would encourage brands and retailers to purchase more US-made textiles and approved apparel products manufactured in countries that have Free Trade Agreements (FTAs) with the United States in the Western Hemisphere.
Under the proposed framework, companies sourcing eligible products would receive tariff credits. These credits could then be used to offset potential Section 301 tariffs on imports from qualifying countries, creating a financial incentive to increase the use of US textiles while promoting regional manufacturing partnerships.
The organisations believe the programme would help diversify sourcing strategies, reduce dependence on distant supply chains, and improve the resilience of the Western Hemisphere textile and apparel ecosystem.
Potential Economic Impact
Industry leaders estimate that implementing the programme could significantly boost US textile exports and domestic investment.
According to the proposal, the initiative has the potential to:
- Double US textile exports to the Western Hemisphere.
- Create more than 56,000 new jobs across the United States.
- Generate billions of dollars in new domestic investment.
- Support the broader textile supply chain, including US cotton farmers and textile manufacturers.
- Encourage the reopening of manufacturing facilities that have closed in recent years.
The organisations argue that stronger regional production networks would also improve supply chain security while helping US businesses respond more effectively to changing global market conditions.
Response to Ongoing Section 301 Investigations
The proposal was submitted as part of the USTR’s ongoing Section 301 investigations into forced labour practices in global supply chains. Rather than relying solely on tariffs and enforcement measures, the industry groups are advocating for an incentive-based approach that rewards companies for sourcing textiles and apparel within trusted regional trade partners.
The organisations believe such a strategy would simultaneously support US manufacturing, encourage responsible sourcing, and strengthen economic partnerships across North, Central, and South America.
Industry Calls for Government Support
In their joint submission, the organisations stated that their collaborative efforts had resulted in a “novel trade incentive programme” capable of delivering multiple economic and strategic benefits.
They emphasised that the programme would stimulate job creation, encourage investment in advanced textile manufacturing, and provide brands and retailers with greater sourcing flexibility.
The industry groups also stressed that the right policy incentives could help revive America’s textile manufacturing base by reopening shuttered factories, expanding production capacity, and fostering long-term industry growth.
Furthermore, they urged the Office of the United States Trade Representative to incorporate the proposed incentive programme into any remedies developed as a result of the ongoing Section 301 investigations.
A Unified Industry Vision
The joint proposal is particularly noteworthy because it brings together organisations representing different segments of the textile and apparel value chain, including manufacturers, apparel brands, retailers, and specialised fabric producers.
This unprecedented collaboration reflects growing recognition that stronger regional supply chains and targeted trade incentives could benefit the entire industry while reducing vulnerabilities exposed by recent global supply chain disruptions.
If adopted, the programme could mark a significant shift in US textile trade policy, combining trade enforcement with investment incentives to strengthen domestic manufacturing, increase exports, and reinforce the Western Hemisphere as a competitive sourcing destination for textiles and apparel.
