Fabric Mills NAICS 3132

Sep 9, 2025 - De Minimis Action Supported by Textile Trade Group

• The National Council of Textile Organizations (NCTO) supports the end of the de minimis exemption, which went into effect in August 2025. An expansive bill signed into law in July by President Trump included a provision to eliminate the de minimis exemption, which had allowed imports under $800 to enter the US duty and tax free. NCTO CEO Kim Glas said the elimination of the loophole will “help rebalance the playing field for the domestic textile industry, which has seen the closure of 28 plants over the past 23 months.” The regulations establish a civil penalty for violators, with $5,000 for the first violation and $10,000 per subsequent offense. Earlier this year, Trump had suspended the de minimis exemption for imports from China. The number of shipments entering the US using the exemption in the last four years increased from 637 million to over 1 billion per year.
• Textile mills are one of the seven manufacturing industries reporting growth in August’s Manufacturing ISM Report on Business. Textile mills reported increases in production and new orders, a rise in employment, slower supplier deliveries, growth in order backlogs, higher inventories, and higher prices for raw materials. Other industries reporting growth were Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Miscellaneous Manufacturing; and Primary Metals. Ten manufacturing industries reported contraction during the period, including Paper Products; Wood Products; Plastics & Rubber Products; Transportation Equipment; Furniture & Related Products; Machinery; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Chemical Products; and Fabricated Metal Products. Overall, economic activity in the manufacturing sector contracted for the sixth consecutive month in August, with the Manufacturing PMI registering 48.7%.

• A newly released report by the International Textile Manufacturers Federation (ITMF) analyzes the cost components and carbon footprint of key textile manufacturing stages in 15 major production regions, according to Textile Value Chain. The ITMF’s International Production Cost Comparison (IPCC) report focused on 2023 data. For example, producing one meter of cotton woven fabric in a continuous open width process averaged USD 0.94 in 2023 (excluding raw material), with costs ranging from USD 0.70 in Bangladesh to USD 1.54 in Italy. Countries with the highest labor costs were Italy, the US, and Korea, while the lowest labor costs were in Indonesia, Egypt, and Bangladesh. The report showed energy costs were highest in Central America, Italy, and Mexico, while lowest in Pakistan and Egypt. Examining the carbon footprint of producing one meter of finished cotton fabric using continuous open width finishing, India had the highest emissions while Brazil recorded the lowest emissions.
• The US fabric mills industry is projected to grow at a CAGR of 4.89% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. This rate is faster than the overall economy's anticipated growth. The nondurable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation.