United States T&A exports recorded a 7.6 per cent volume contraction during H1,  FY26, driven by reduced overseas demand for domestic yarns and industrial fabrics. Official figures from the Office of Textiles and Apparel (OTEXA) show, total export volumes fell to 1,010 million kg. While finished garment exports posted a minor increase, steep drops in yarn and woven fabric shipments to nearshore manufacturing hubs across Latin America weighed down overall figures.

Supply chain realignments disrupt nearshore yarn-forward trade

The downturn underscores shifting global sourcing strategies and elevated operational costs for Western Hemisphere textile mills. US MCA trade corridors—historically reliant on American yarn-forward provisions—experienced softer order books as regional apparel assemblers faced heightened price competition from Asian suppliers.

Diverting assembly capacity toward alternative raw material sources has created near-term friction for domestic fiber producers, states Julia K. Hughes, President,, United States Fashion Industry Association.

In a notable contrast, nearshore partners such as Mexico saw duty-free garment exports to the US rise, yet domestic fabric suppliers struggled to capture corresponding volume growth. Maintaining competitiveness will require US mills to modernize production infrastructure while navigating volatile input costs across international supply chains.

OTEXA trade governance profile

A unit of the US Department of Commerce, The Office of Textiles and Apparel (OTEXA) monitors international trade data and formulates economic policy for American textile and garment sectors. Managing trade programs across global markets, OTEXA supports domestic mills through trade agreement compliance, targeted export expansion initiatives, and comprehensive industry performance tracking.