Latest news with #NCTO
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
US manufacturers should focus on tanks, tech, AI, not textiles: Trump
US tariff policy aims at promoting domestic manufacturing of tanks and technology products, not sneakers and T-shirts, President Donald Trump said yesterday. Speaking to reporters before boarding Air Force One in New Jersey, Trump said he agreed with the recent remark by treasury secretary Scott Bessent that the United States does not necessarily need a 'booming textile industry'. The National Council of Textile Organizations (NCTO) had criticised Bessent's comments. US tariff policy aims at promoting domestic manufacturing of tanks and technology products, not sneakers and T-shirts, President Donald Trump said yesterday. He agreed with treasury secretary Scott Bessent's remark that the US does not necessarily need a 'booming textile industry'. "We're not looking to make sneakers and T-shirts. We want to make military equipment….big things…AI thing," he said. "We're not looking to make sneakers and T-shirts. We want to make military equipment. We want to make big things. We want to make, do the AI thing," Trump said. "I'm not looking to make T-shirts, to be honest. I'm not looking to make socks. We can do that very well in other locations. We are looking to do chips and computers and lots of other things, and tanks and ships," Trump was quoted as saying by global newswires. The American Apparel & Footwear Association (AAFA) responded by saying that that tariffs are not good for the industry. "With 97 per cent of the clothes and shoes we wear being imported, and with clothes and shoes already the most highly tariffed industry in the US, we need to focus on common sense solutions that can move the needle," AAFA president Steve Lamar said in a statement. "More tariffs will only mean higher input costs for US manufacturers and higher prices that will hurt lower income consumers," he noted. Fibre2Fashion News Desk (DS)
Yahoo
16-05-2025
- Business
- Yahoo
US textile sector backs proposal to end de minimis for all countries
The US House Ways & Means Committee, the chief tax-writing committee in the House of Representatives, included a provision in the budget reconciliation bill that would eliminate de minimis entry privilege for commercial shipments permanently. According to Section 321 of the Tariff Act of 1930, shipments destined for businesses and consumers in the US with a value below $800 are permitted entry into the country without being subjected to duties and taxes. The provision was terminated for goods from China, including Hong Kong and Macau, as of 2 May, but it remains applicable to imports from other nations. The latest provision 'repeals the de minimis privilege worldwide' effective 1 July 2027. It added that 'this section also increases penalties for violators of Section 321 of the Tariff Act of 1930'. NCTO president and CEO Kim Glas said: 'On behalf of the US textile industry, we would like to commend the House Ways and Means Committee for including an important and critical provision in the broader budget reconciliation bill that would permanently end de minimis access for commercial shipments from all countries, effective 1 July 2027. 'The committee is slated to consider and mark up this legislation today. This significant step by chairman Jason Smith (R-MO), Rep. Greg Murphy (R-NC), and the entire committee validates that the destructive de minimis loophole has harmed US textile manufacturing and impeded the fight against illicit fentanyl trafficking and must be permanently closed.' Data from US customs revealed a surge in de minimis exemption use by over 600%, climbing from around 139m shipments in fiscal year 2015 to over 1bn annually in 2023. In 2024, shipments entering under de minimis reached 1.36bn. The proposed legislation maintains lower de minimis levels for gifts and personal items brought into the US. Additionally, it introduces penalties for misuse of de minimis before this deadline to import goods in violation of US laws, setting fines at $5,000 for initial infractions and $10,000 for subsequent ones. Glas added: 'As the bill makes its way through the legislative process, we strongly support a more aggressive timeline to implement a permanent ban on de minimis globally given its significant harm to manufacturers, retailers, and the fight against fentanyl and other illegal products. Express shippers have already transitioned to processing all Chinese imports through sophisticated logistics systems, demonstrating their ability to comply with the president's executive orders and pivot quickly. 'We recognise the committee's leadership in moving forward with a permanent global solution that will help restore a level playing field for US manufacturers and spur more investment and job growth.' Earlier this month (May), NCTO praised the Trump Administration's termination of de minimis for low-value shipments from China and Hong Kong and called for an extension of this policy to all countries. "US textile sector backs proposal to end de minimis for all countries" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Fibre2Fashion
15-05-2025
- Business
- Fibre2Fashion
US NCTO hails House move to permanently ban de minimis shipments
The US National Council of Textile Organizations (NCTO) recently commended the House Ways and Means Committee for including an important and critical provision in the broader budget reconciliation bill that would permanently end de minimis access for commercial shipments from all countries, effective July 1, 2027. 'This significant step….validates that the destructive de minimis loophole has harmed US textile manufacturing and impeded the fight against illicit fentanyl trafficking and must be permanently closed,' NCTO president and chief executive officer Kim Glas said in a statement. US trade body NCTO has commended the House Ways and Means Committee for including an important and critical provision in the broader budget reconciliation bill that would permanently end de minimis access for commercial shipments from all countries, effective July 1, 2027. “We strongly support a more aggressive timeline to implement a permanent ban on de minimis globally,†it said. 'As the bill makes its way through the legislative process, we strongly support a more aggressive timeline to implement a permanent ban on de minimis globally given its significant harm to manufacturers, retailers, and the fight against fentanyl and other illegal products,' he said. 'Express shippers have already transitioned to processing all Chinese imports through sophisticated logistics systems, demonstrating their ability to comply with the president's executive orders and pivot quickly,' he added. Fibre2Fashion News Desk (DS)
Yahoo
14-05-2025
- Business
- Yahoo
Why South Carolina's Textile Manufacturers Want to Talk To Scott Bessent
South Carolina's textile producers want to make it clear to Treasury Secretary Scott Bessent that they're not involved with 'jobs of the past,' as the Palmetto State native suggested in a press conference late last month, but rather a vital—and indeed, still thriving—part of the country's national and economic security. Writing in a letter organized by the National Council of Textile Organizations, or NCTO, on Friday, more than 30 manufacturing CEOs and cotton farmers asked Bessent if they could disabuse him of the notion that 'we don't need to necessarily have a booming textile industry where I grew up.' More from Sourcing Journal Trump Administration Slashes De Minimis Duties as Trade War Cools Long Beach Mayor Says It Could Take Months to 'Untangle the Backlog' at Nation's Busiest Port China Has 'Agreed to Open Up' Trade With US as Both Countries Suspend Aggressive Duties They said that it isn't for nothing that the United States is one of the largest exporters of textiles in the world with more than $64 billion in shipments in 2024. The industry continues to employ 471,000 workers—15,000 in South Carolina alone—that produce more than 8,000 products for the American military and supplies fibers, yarns and fabrics to free-trade zones covered under the likes of U.S.-Mexico-Canada Agreement and the Central America-Dominican Republic Free Trade Agreement. 'While hearing your comments was disappointing, the sentiment you expressed is understandable,' the letter read. 'It is a common misconception that we no longer have an American textile industry, the result of decades of headlines about the offshoring of apparel assembly jobs in response to unfair, predatory global competition. Rather than offshore, however, the U.S. textile industry adapted, innovated and embraced advanced manufacturing technologies. Today, South Carolina is home to some of the most sophisticated textile operations in the world because of these investments.' Reshoring domestic manufacturing has been a tentpole of the Trump administration's policymaking. Bessent was defending the White House's aggressive 'reciprocal' tariff plan as a way to bring back what he dubbed 'high-quality industrial jobs' such as auto and precision manufacturing to make trade 'free and fair' while reducing the United States' reliance on overseas supply chains that could get cut off like they did during the pandemic. He also dismissed the idea that uncertainty around tariffs, by blunting trade and investment, would damage the economy. On Monday, Bessent told CNBC that the new trade truce with China would help the United States 'decouple' for 'strategic necessities,' such as those it was unable to obtain at the height of Covid-19. 'It's my perception that he confuses apparel assembly jobs and textiles,' said James C. Self, III, president and CEO of Greenwood Mills, the largest U.S. supplier of spun nylon/cotton fabrics to the American military and one of the letter's signatories. 'He wants us all in one group, and that's just simply not the case. My initial reaction was that he's misinformed about what the textile industry is.' NCTO says it hasn't heard back yet about a possible meeting with the secretary, whose press office didn't respond to a request for comment. The call-out is a rare moment of pushback against the Trump administration from the organization, which has previously praised the president for preserving duty-free trade for USMCA-compliant imports from Mexico and Canada and 'getting tough' on 'unfair' Asian nations that have long undercut domestic production. NCTO's members have also supported the closure of the so-called de minimis loophole with China, though they would also like to see greater enhancements of USMCA and CAFTA-DR that could swing the pendulum even further in their direction. 'I certainly think the rebalancing of trade is a net positive for U.S. textiles,' said James McKinnon, CEO of Cotswold Industries/Central Textiles, a third-generation producer of technical and apparel textiles who also signed the letter to Bessent. 'I think if given a level playing field, we could succeed. We are also very actively in favor of finding trade laws that incentivize additional investment and are very hopeful that a lot of these things can get codified into law at some point where our customers and ourselves can plan out three to five to 10 years with confidence.' While the White House announced this week that it will be cutting the de minimis tariff on sub-$800 shipments from China from 120 percent to 54 percent—while maintaining the flat $100 fee option—a ban on de minimis for all countries could also be forthcoming in the House Ways and Means Committee's reconciliation of President Trump's 'big beautiful bill' on Tuesday. If greenlit, this could spell an end to the exemption on July 1, 2027, though NCTO CEO Kim Glas says she would prefer to see a more accelerated timeline given the 'significant harm to manufacturers, retailers and the fight against fentanyl and other illegal products.' 'Express shippers have already transitioned to processing all Chinese imports through sophisticated logistics systems, demonstrating their ability to comply with the president's executive orders and pivot quickly,' she said. 'We recognize the committee's leadership in moving forward with a permanent global solution that will help spur more investment and job growth.' McKinnon would be happy to talk to Bessent, U.S. Trade Representative Jamieson Greer or anyone on Capitol Hill who will listen. Any conversation presents an opportunity to educate and 'move the ball forward,' he said. 'The American textile industry is quite resilient. We just need to be three steps ahead of whatever happens. We need to make sure that our children's children have the ability to clothe themselves.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion United
02-05-2025
- Business
- Fashion United
Trump officially closes de minimis loophole for Chinese goods: What you need to know
The de minimis tax exemption has officially closed for Chinese imports to the US. The loophole has caused much debate in recent years, particularly as experts weigh the possible impact and implications on both companies and consumers if a full halt was enforced. Here is what you need to know… What is the de minimis exemption? De minimis – a Latin term translating to 'of the smallest' – refers to a tax or duties exemption on small scale imports worth less than 800 dollars for US customers. The policy dates back to the 1930s, with around 100 countries currently benefiting from the exemption. The bottom line had increased from 200 dollars to its current stance in 2016 under former president Barack Obama. Why is it being closed? The de minimis policy had already come under scrutiny from the predecessor to current US president Donald Trump, Joe Biden, whose own administration had thrown doubt over the future of the exemption. Trump then briefly paused the loophole for Chinese goods back in February as part of increased efforts to curb the flow of cheap products from the region into the US. The White House has accused Chinese sellers of taking advantage of the loophole, while the free flow of unchecked small packages entering the country is also deemed to have allowed illicit goods, such as fentanyl, into the country. Local companies have further issued complaints that the exemption has created an unfair competition. How will it impact brands? Chinese imports worth less than 800 dollars will now be subject to 120 percent levy. In the way of fashion, this will particularly impact the operations of Chinese fast fashion giants like Shein, which has already enacted plans to increase prices for US customers. The company is said to have increased the average prices of around 100 of its products by 51 percent in the past week. Its competitor, Temu, meanwhile, has told various media outlets that it has shifted to a local fulfilment model, meaning US sales are handled by sellers in the company and thus prices remain unchanged. Both firms are reported to have accounted for about 17 percent of the US discount market in 2023, according to a report by the Congressional Research Service (CRS). How is the local industry responding? The general consensus is proving to be fairly positive from US organisations, so far. The National Council of Textile Organisations (NCTO) has hailed the decision to close the 'largely exploited' and 'destructive' loophole as a 'significant step' for the Trump Administration. In a statement, president and CEO of the NCTO, Kim Glas, said the firm was 'grateful' to Trump for halting an exemption 'that has allowed unsafe and illegal Chinese goods … to flood the US market duty-free and largely unchecked for years'. Glas, who is now calling on congress to end de minimis for commercial shipments from all countries, added: 'Today's action by the administration is an important step forward to help rebalance the playing field for American manufacturers, preserve good-paying American manufacturing jobs, spur more investment and innovation in manufacturing facilities here at home, and close the backdoor to China once and for all.' Similar sentiments were shared in a statement to the NCTO by Amy Bircher Bruyn, CEO and founder of MMI Textiles, an Ohio-based manufacturer that employs around 60 people. Bruyn said the loophole had 'wreaked havoc on the US textile industry' and thus she was 'encouraged by president Trump's commitment to ending de minimis eligibility for Chinese imports'. What happens now? As stated by NCTO, many US firms are calling for a full halt on the de minimis rule for other countries, too, in order to avoid an influx of cheap Chinese goods to enter from third countries. Meanwhile, other regions are also bracing for the potential impact of cheap goods entering their respective markets as an alternative to the US. In the UK, government officials have begun weighing their own adjustments to the de minimis policy, which currently allows goods valued at 135 pounds or less to be imported without consumers paying duties. It comes as part of wider plans to mitigate the impact of 'practices that undercut fair trade' and 'cheap imports [flooding the] markets'.
