The United States has loudly criticized China's trade policies in the textile and apparel industry for causing 28 US textile mills to close up shop in the last 22 months.
The Office of the United States Trade Representative (USTR) stated that China's "non-market policies" provide its manufacturers with unfair advantage, enabling them to sell products artificially low and below the cost of US industry.
The US bought $79.3 billion worth of apparel in 2024 of which 21% was produced in China. Chinese online retailers also controlled more than 30% of total de minimis shipments to the US on a daily basis, dumping cheap apparel into the market that avoids tariffs and trade enforcement. This has disproportionately hurt local communities, particularly Southeast-based industries, forcing workers to suffer through huge layoffs and plant closures.
Industry leaders and the National Council of Textile Organizations welcomed recent calls to shut down the de minimis loophole that let Chinese low-value shipments come in duty-free, terming it a major step towards US manufacturing and job protection.
They are further urging action on cutting such allowances to all nations to avoid evasion, and China might shift goods through third countries, they warned.
The USTR notice and recent policy developments are manifestations of growing US discontent with the widening US trade deficit with China, which totaled $295.4 billion in 2024, 5.8% higher than a year ago.
The US is demanding tougher trade enforcement to bring back fair competition and motivate its domestic textile industry.
