The National Council of Textile Organizations (NCTO) has applauded President Donald Trump for his executive order to eliminate the ‘de minimis’ exemption for all global commerce shipments, effective August 29.

Kim Glas, President and CEO, NCTO, issued a statement praising the decision, which addresses a long-standing concern for the American textile industry. For eight years, NCTO has campaigned against the de minimis loophole, which allows approximately 4 million packages daily to enter the U.S. duty-free and without rigorous inspection. Half of these shipments are estimated to be textiles and apparel.

The de minimis mechanism has functioned as a black box for low-cost, subsidized, and unethical Chinese imports, Glas states, highlighting how it undermines the competitiveness of US manufacturers. This loophole has facilitated the entry of goods made with forced labor from Xinjiang, China, and even illicit fentanyl, reaching American consumers unchecked, she emphasizes.

A key member of the Coalition to Close the De Minimis Loophole, NCTO thanked President Trump for recognizing the ‘severe impact’ of this provision. The executive order restores fairness for US manufacturers, closes a major gateway for illegal and toxic goods, and lays the groundwork for reinvestment and job creation here at home, Glas adds.

The organization notes, coupled with bipartisan legislation to codify the de minimis repeal by July 2027, this executive order effectively slams the door shut on one of the most damaging trade loopholes in US history. The US textile supply chain currently employs 471,046 individuals, generated $63.9 billion in shipments in 2024, and exported $28.0 billion in fiber, textiles, and apparel last year.