US textile and apparel exports declined 5.7 per cent year on year during the January–September 2026 period, according to Office of Textiles and Apparel (OTEXA) trade data. Contractions across yarn, fabric, and finished apparel shipments reflect weaker downstream manufacturing activity among Western Hemisphere trade partners. Shipments to Mexico, Honduras, and the Dominican Republic - markets that depend on American yarns and fabrics for duty-free garment assembly- fell noticeably, with the Dominican Republic recording the sharpest contraction among top-ten destinations. Only Canada, the United Kingdom, and Guatemala registered modest export gains over the nine-month period.
Asian self-sufficiency and tariff pressures
Simultaneously, outbound shipments to China continued to contract as Chinese mills expand domestic upstream input production to prioritize supply self-sufficiency. Across the broader sector, elevated tariff structures - with average applied US apparel import tariffs climbing to 21.6 per cent in 2026 - and cautious retail inventory replenishment have dampened cross-border trade volumes. Slower garment replenishment across North and Central America is directly curbing mill utilization rates for domestic yarn spinners, noted David Miller, Trade Economist, Charlotte.
Technical textiles offer commercial buffer
While conventional apparel inputs face headwinds, US mills supplying technical and defense textiles are maintaining steadier order books. For instance, domestic manufacturers fulfilling modernized Berry Amendment military uniform and medical textile contracts have insulated revenue streams from volatile seasonal fashion cycles.
Countering cyclical demand with sustainable production
The US textile and apparel manufacturing sector supplies yarns, woven and knitted fabrics, finished garments, and industrial technical textiles across North American and global markets. Valued at $285.70 billion in 2026, the industry is expanding sustainable, recycled fiber capacity and federal defense-grade production to counter historic offshoring and cyclical apparel demand.
