WASHINGTON, D.C. — July 6, 2026 — Industry organizations representing U.S. textile manufacturers, apparel brands, and retailers urged the Trump administration to adopt a newly developed textile and apparel trade incentive program they proposed in a joint submission to the U.S. Trade Representative’s Office (USTR) today. This is the first time these organizations have teamed up to publicly advocate for a joint trade policy initiative.
In their written submission to USTR related to proposed actions in Section 301 investigations of various economies’ policies on goods made with forced labor, the groups—which normally take strongly divergent policy positions on trade—jointly proposed a program designed to “reshore domestic manufacturing, stabilize and grow Western Hemisphere textile and apparel supply chains, and help brands and retailers to diversify sourcing at a critical time.”
“Our joint efforts have resulted in the development of a novel trade incentive program that would achieve various important goals,” including “the revitalization and growth of U.S. textile manufacturing, exports, and investment, resulting in over 56,000 new jobs” in the United States.
Increased U.S. textile exports under the program could “drive billions of dollars of new domestic investment” and benefit the entire supply chain, including cotton farming.
The program is designed to “allow brands and retailers to earn tariff credits when they buy U.S. textiles and qualified apparel goods from key Western Hemisphere U.S. free trade agreement (FTA) partners. Brands and retailers could then apply those credits to offset potential Section 301 tariffs from eligible countries—a win-win strategy to unlock significant growth for U.S. textile manufacturers, brands, and retailers,” they state in their joint submission.
See a link to the full USTR submission here.
The associations developed and put forth the new incentive program in response to a textile mechanism proposed by USTR as part of the Section 301 investigations on forced labor.
“We believe with the right incentives we can grow jobs substantially in the United States, reopen shuttered factories, and make the critical investments needed to maintain and to grow America’s textile industry by also helping brands and retailers find new opportunities. As such, we respectfully request the United States Trade Representative to consider including our proposed incentive program as a component of any remedy that results from the Section 301 investigations currently underway.”
If adopted by the administration, the groups note their textile and apparel trade incentives program “has the potential of doubling U.S. textile exports to the Western Hemisphere, reaching a total of $29 billion annually. This significant increase in U.S. textile exports would create substantial new U.S. jobs and unleash a much-needed wave of textile sector investment in the United States.”
The public submission was filed by the National Council of Textile Organizations (NCTO), American Apparel & Footwear Association (AAFA), United States Fashion Industry Association (USFIA), and the U.S. Industrial and Narrow Fabrics Institute (USINFI).
Learn more about the associations:
National Council of Textile Organizations : https://ncto.org/
American Apparel & Footwear Association : https://www.aafaglobal.org/
United States Fashion Industry Association : https://www.usfashionindustry.com/
U.S. Industrial and Narrow Fabrics Institute : https://usinfi.textiles.org/
Posted: July 6, 2026
Source: National Council of Textile Organizations (NCTO), American Apparel & Footwear Association (AAFA), United States Fashion Industry Association (USFIA), and the U.S. Industrial and Narrow Fabrics Institute (USINFI)
