USTR cites rising plant closures, surging imports, and trade enforcement loopholes as it criticizes China’s non-market policies in the textile and apparel sector.
Washington, D.C., May 4:
The United States Trade Representative (USTR) has issued a pointed warning against China’s trade practices in the textiles and apparel sector, accusing Beijing of undermining American manufacturers through non-market policies and tariff loopholes.
In a post shared on National Textile Day, the USTR called out what it termed “unfair competitive advantages” granted to Chinese manufacturers, resulting in artificially low-priced exports that are damaging U.S. industry.
“China’s non-market policies allow domestic manufacturers to charge artificially low prices. This has led to devastating impacts on U.S. producers, with 28 textile plants closing in the last 22 months,” USTR stated.
Massive Trade Gap and E-Commerce Loopholes
The USTR highlighted that in 2024, the U.S. imported $79.3 billion worth of apparel, with 21% originating from China. Alarmingly, Chinese e-commerce companies accounted for over 30% of all daily de minimis shipments—small packages that bypass regular tariffs and inspection protocols, according to the agency.
“This flood of cheap apparel has decimated local industries, particularly in the Southeast United States,” the statement continued.
Widening Trade Deficit with China
The report also outlined growing imbalances in overall U.S.-China trade:
- Total goods trade (2024): $582.4 billion
- U.S. exports to China: $143.5 billion (↓ 2.9% from 2023)
- U.S. imports from China: $438.9 billion (↑ 2.8% from 2023)
- Trade deficit: $295.4 billion (↑ 5.8%)
These figures highlight a deepening trade deficit, despite previous efforts to rebalance economic ties between the two nations.
Push for Stricter Enforcement and Domestic Revitalization
With the closure of U.S. textile facilities and the rise in Chinese imports, calls are growing within the U.S. government for stronger trade enforcement, review of de minimis policies, and reinvestment in domestic manufacturing.
USTR officials say they are actively exploring new mechanisms to protect vulnerable sectors and counter China’s alleged manipulative trade tactics.