On a 7 July deadline, Knitting Industry reports on USFIA's joint proposal aims to boost US textile manufacturing and Western Hemisphere sourcing:
July 7, 2026
U.S. textile manufacturers, apparel brands and retailers have jointly called on the Trump administration to adopt a new textile and apparel trade incentive programme designed to strengthen domestic manufacturing, expand exports and reinforce supply chains across the Western Hemisphere.
In a submission to the Office of the United States Trade Representative (USTR) relating to proposed Section 301 actions on goods produced with forced labour, four leading industry associations have, for the first time, publicly backed a common trade policy initiative despite traditionally holding differing positions on trade.
The proposed programme would allow apparel brands and retailers to earn tariff credits by purchasing U.S.-made textiles and qualifying apparel products from selected Western Hemisphere countries that have free trade agreements with the United States. These credits could then be used to offset potential Section 301 tariffs on imports from eligible countries.
According to the joint submission, the incentive programme is intended to encourage the reshoring of manufacturing, strengthen regional textile and apparel supply chains and support sourcing diversification at a time of increasing geopolitical and supply chain uncertainty.
The organisations estimate that the initiative could create more than 56,000 new jobs in the United States while stimulating billions of dollars in domestic investment. Increased exports of U.S. textiles would also benefit the wider supply chain, including cotton producers.
If implemented, the programme has the potential to double U.S. textile exports to the Western Hemisphere, reaching an estimated annual value of US$29 billion. The groups believe this growth would help reopen manufacturing facilities, support investment in new production capacity and reinforce the competitiveness of the U.S. textile sector.
The proposal was developed in response to a textile mechanism put forward by the USTR during its ongoing Section 301 investigations into forced labour-related trade practices.
The joint submission was filed by the National Council of Textile Organizations (NCTO), the American Apparel & Footwear Association (AAFA), the United States Fashion Industry Association (USFIA) and the U.S. Industrial and Narrow Fabrics Institute (USINFI).