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Pressed But Not Retreating: U.S. Textiles Fight Back in 2026

• By  Textile Excellence
• July 01, 2026

The U.S. textile industry has entered 2026 at a high-stakes crossroads, balancing brutal global competition against significant policy wins and a US$60.9 billion annual footprint that directly anchors national security and advanced manufacturing. Outgoing NCTO Chairman Chuck Hall emphasized that while the sector faces severe pressure — evidenced by over 40 plant closures due to trade volatility — it is aggressively fighting back through record capital investments in automation and the legislative closing of the "de minimis" loophole.

Defense and domestic production

The U.S. military relies on a secure domestic supply chain, with textile manufacturers providing over 8,000 distinct, high-tech products—from uniforms to ballistic materials—totaling more than US$1.8 billion annually in defense contracts. This critical infrastructure ensures that American mission readiness is not compromised by foreign dependencies.

Investing in the future

Despite a challenging economic climate that saw annual shipments dip to US$60.9 billion, the industry is not retreating, having invested US$34.3 billion in advanced manufacturing technology since 2017, including US$5.5 billion in 2024 alone. This relentless focus on modernization has secured the United States' position as the world's second-largest exporter of textile products.

A legislative counterpunch

The industry's 2026 outlook is aggressive, characterized by a massive legislative victory targeting the "de minimis" loophole, which previously allowed 1.4 billion duty-free shipments to bypass domestic producers. Moving forward, the sector is pushing for strict enforcement of the Berry Amendment and demanding tariff relief on imported machinery to sustain its competitive edge.

Outgoing NCTO Chairman Chuck Hall emphasized that while the sector faces severe pressure — evidenced by over 40 plant closures due to trade volatility — it is aggressively fighting back through record capital investments in automation and the legislative closing of the "de minimis" loophole.