NCTO Urges USTR to Strengthen U.S. Textile Manufacturing Through Forced Labor Trade Measures
Association recommends tariff reforms, stronger customs enforcement and incentives for Western Hemisphere sourcing during Section 301 investigations.
As part of the ongoing Section 301 investigations into acts, policies and practices related to goods made with forced labor, the National Council of Textile Organizations (NCTO) has outlined recommendations intended to strengthen domestic textile manufacturing in the United States.
NCTO President and CEO Kim Glas is scheduled to testify at the USTR hearings on the Section 301 forced labor investigations on July 9.
In its written submission, the association stated:
“Forced labor remains prevalent in global textile and apparel supply chains and unfairly disadvantages U.S. textile manufacturers. The administration now has the opportunity to take meaningful actions in the investigations to revitalize the domestic textile industry and to defend it from unfair, predatory trade practices like forced labor. The right approach could potentially double industry capacity; the wrong solution will cost U.S. jobs and create irreparable harm.”
Key Recommendations to USTR
NCTO has recommended that the USTR:
- Impose Section 301 duties on imports of apparel and finished textile products from China and South and Southeast Asian countries that utilize forced labor in manufacturing.
- Preserve duty-free treatment for USMCA/CAFTA-DR qualified textiles and apparel.
- Make reforms to the proposed textile mechanism to support domestic industry growth.
- Strengthen customs enforcement.
Suggested Reforms to the Proposed Textile Mechanism
The association stated that it opposes the proposed textile mechanism in its current form and recommended three changes to ensure it supports domestic manufacturers:
- Exclude raw cotton from the proposed textile mechanism, stating that its inclusion rewards offshoring of U.S. yarn, fabric and apparel production.
- Exempt textile manufacturing inputs and machinery not produced domestically from additional Section 301 tariffs to improve U.S. competitiveness.
- Encourage increased sourcing of U.S. textiles and apparel from the Western Hemisphere to strengthen domestic manufacturing and supply chains without forced labor.
Alternative Incentive Proposal
NCTO also urged the USTR to consider an alternative textile and apparel incentive programme developed jointly by textile, apparel and retail industry groups.
Under the proposal, brands and retailers would earn tariff credits when purchasing U.S. textiles and qualified apparel products from eligible Western Hemisphere U.S. free trade agreement (FTA) partners. These credits could then be used to offset potential Section 301 tariffs from eligible countries.
According to NCTO, eligibility for tariff credits would require verified supply chain information confirming the absence of forced labor.
Industry Overview
NCTO is a Washington-based trade association representing domestic textile manufacturers.
According to the association, U.S. employment in the textile supply chain reached 453,122 in 2025, while the value of shipments for U.S. textiles and apparel totalled $60.9 billion in 2025.