Fabric Mills NAICS 3132

Mar 16, 2026 - Tariff Refund Ruling Could Benefit Fabric Mills

• A legal dispute over tariffs could affect costs and pricing dynamics for companies in the US fabric mills industry, according to Furniture Today. At least nine home-related companies, including textile suppliers Culp Inc. and Standard Textiles, have filed complaints with the US Court of International Trade seeking refunds for tariffs collected under the 1977 International Emergency Economic Powers Act (IEEPA). The companies argue the tariffs were unconstitutional and therefore unlawfully collected. The filings follow court rulings, including a US Supreme Court decision on Feb. 20, stating IEEPA does not authorize the President to impose tariffs, and a trade court judge recently indicated importers who paid the tariffs are due refunds. Culp Inc.’s CEO said the company adjusted pricing to offset tariff costs but is seeking reimbursement for losses. Potential refunds could partially offset tariff-related expenses for textile suppliers and other manufacturers.
• Employment by fabric mills declined 1.6% in November 2025 compared to a year ago and fell 23.5% in the past 10 years, according to the latest data from the Bureau of Labor Statistics. Producer prices for fabric mills rose 2.1% in November 2025 compared to a year ago, per BLS data. Textile mills and textile product mills' sales and after-tax profits were on the rise in Q2 2025; fabric mills are included in the textile mills industry, according to data from the Census Bureau. Sales for textile mills and textile product mills were up 9.6% in Q2 2025 compared to a year ago, according to the Census Bureau. After-tax profits for textile mills and textile product mills were up 34.2% in Q2 2025 compared to a year ago.

• US import cargo volumes are expected to remain below year-over-year levels until spring 2026, reflecting continued trade policy uncertainty and weaker post-holiday demand, according to an NRF and Hackett Associates report in Textile World. While January may see a temporary month-over-month increase ahead of Lunar New Year factory shutdowns in Asia, volumes are still forecast to be down more than 5% year over year, with declines continuing through April before turning positive in May. For US fabric mills, lower import volumes suggest a mixed environment. Reduced textile and apparel imports, partly driven by higher tariffs and earlier-than-usual importing in 2025, could modestly improve competitive positioning for domestic mills. However, ongoing uncertainty around tariffs and trade policy may constrain downstream demand from retailers, limiting near-term growth opportunities until supply chain conditions stabilize later in the spring.
• Conditions for the US fabric mills industry were mixed in February, but the ISM report points to improving activity, according to February's Manufacturing ISM Report on Business. ISM said the overall Manufacturing PMI registered 52.4%, showing expansion for a second straight month, while New Orders rose to 55.8% and Production to 53.5%, signaling continued growth in factory demand and output. Textile Mills, which includes the fabric mills industry, was one of the 12 manufacturing industries reporting growth in February, and the industry also reported slower supplier deliveries, which ISM measures at 55.1% nationally, a sign of stronger demand. Textile Mills also reported higher inventories as the Inventories Index improved to 48.8%. However, demand conditions were not uniformly strong: Textile Mills was the only industry reporting customers’ inventories as too high, which could limit near-term reorders. ISM also noted that prices increased sharply, with the Prices Index jumping to 70.5%, creating ongoing cost pressure for fabric mills.