New tariff ‘textile mechanism’ clause to disadvantage US textile makers
On July 24, 2026, the Trump Administration announced new tariffs on imports from 60 economies, following a USTR investigation into failures to enforce bans on forced labor goods. The National Council of Textile Organisations (NCTO) criticized a 'textile mechanism' clause that offers Section 301 duty relief for textile and apparel imports from Bangladesh, Cambodia, Indonesia, and Malaysia based on their imports of US cotton and textiles. NCTO argues this will harm US domestic manufacturers, who have lost 41 plants and employ 453,000 workers. The group warns that Asia's US market share has grown from 77% to 79% since 2019, while the Western Hemisphere's share shrank from 16% to 12%. NCTO claims the mechanism will not boost US yarn/fabric exports due to Asia's reliance on subsidized inputs, and urges stronger enforcement of the Uyghur Forced Labor Prevention Act instead.
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