With every action having possible reactions, the US textile industry has raised concerns about the high import tariffs on Mexico and Canada announced by the Trump administration. The textile industry has urged the newly elected US President to reconsider and negotiate the 25 per cent import tariffs and crack an alternative deal instead, according to a report.
As the textile industry intends for the Government to consider its request, Donald Trump plans to impose these tariffs starting 4th March for Canada and Mexico. In addition to this, the US plans another 10 per cent tariff increase for Chinese imports.
With the expiration of a tariff pause on imports from Mexico and Canada looming, the US textile sector, alongside its Mexican and Canadian counterparts, is urgently demanding a deal to avoid renewed trade tensions.
The US’s National Council of Textile Organizations (NCTO), Mexico’s National Chamber of the Textile Industry (CANAINTEX), and the Canadian Textile Industry Association (CTIA) are pressing for a swift resolution, including the de minimis threshold issue, highlighting the US $ 20 billion co-production chain and 1.6 million jobs at stake under the United States-Mexico-Canada Agreement (USMCA). The US industry, which sends US $ 12.3 billion in textiles to these nations, fears significant disruption if tariffs are reinstated, as both Mexico and Canada are prepared to retaliate.
Mexico holds a major share of textile and apparel exports worth US $ 9 billion to the US annually and is the fourth-largest textile exporter and sixth-largest apparel exporter for the US. Canada’s textile and apparel exports to the US and Mexico also stand at US $ 1.8 billion and this includes specialised technical textile materials including flame retardant fabrics and other medical equipment.
Kim Glas, president and CEO of the NCTO, said that while the organisation fully supports President Trump’s efforts to stem illegal migration and address the fentanyl crisis, they urged the administration to refrain from imposing penalty tariffs on imports from USMCA partners. She emphasised their focus on ensuring a normalised trading relationship between the countries.
Glas further explained that imposing penalty tariffs on imports from critical US free trade agreement (FTA) partners would only serve to benefit China and other Asian countries that do not adhere to established rules, and would harm the US textile industry and manufacturers within their Western Hemisphere supply chains.
