US Textile Sector Stable Despite 2025 Disruption, Says NCTO

Why It Matters

The data show that the textile supply chain can absorb shocks, preserving jobs and export revenue, while policy advocacy will shape competitiveness in a volatile trade environment.

Key Takeaways

• 40 US textile plants closed in past 2.5 years.
• 2025 shipments valued $60.9bn, down 5% from 2024.
• $34.3bn invested in advanced manufacturing 2017‑2024.
• Policy wins include de‑minimis loophole closure and tariff exemptions.
• NCTO aims to protect Berry Amendment and duty‑free status in 2026.

Pulse Analysis

The U.S. textile industry, a $60.9 billion segment of the broader manufacturing economy, has demonstrated notable resilience amid a turbulent trade landscape. Over the last two and a half years, more than 40 plants shuttered, underscoring the vulnerability of rural communities that depend on mill employment. Yet, the sector’s integrated supply chain has limited the fallout, keeping overall output only slightly below 2024 levels. This stability is partly attributable to strategic investments—$34.3 bn poured into advanced manufacturing between 2017 and 2024—positioning firms to adopt automation and higher‑value processes.

Trade policy remains a decisive factor for textile firms. In 2025, the NCTO secured several victories, including the closure of the de‑minimis loophole that previously allowed low‑value imports to evade duties, and new Western Hemisphere tariff exemptions that ease cost pressures on raw materials. Elevated customs enforcement and protections for defense procurement rules further shield domestic producers from unfair competition. These policy gains have helped cushion the sector’s modest revenue dip, with exports holding at $27 bn despite broader market uncertainty.

Looking forward to 2026, the NCTO’s agenda focuses on preserving duty‑free status under USMCA and CAFTA‑DR, expanding tariff exemptions for imported equipment, and strengthening the Berry Amendment—a key defense‑related procurement provision. Success in these areas could unlock additional capital for plant upgrades and sustain the industry’s export momentum. For investors and supply‑chain managers, the message is clear: while headwinds persist, proactive advocacy and continued technology investment are likely to keep the U.S. textile sector competitive on the global stage.