The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber, yarn and fabric to finished sewn products, applauded the Donald Trump administration’s announcement of plans to reinstate duty-free treatment for qualified textile and apparel goods from Guatemala and El Salvador under the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR).
“We sincerely thank Rep. Richard Hudson (R-NC-09), Rep. David Rouzer (R-NC-07) and many members of the House Textile Caucus for their leadership and efforts to help reinstate duty-free benefits for CAFTA-DR countries in support of the domestic textile chain. Today was a strong first step, and we want to thank President Trump, U.S. Trade Representative Ambassador Jamieson Greer and the administration for this important decision.
“The CAFTA-DR region forms a vital co-production chain with the American textile supply chain, facilitating $11.3 billion in two-way trade in 2024 and supporting more than 470,000 U.S. workers in the domestic textile sector alone. However, since reciprocal tariffs were imposed on qualifying CAFTA-DR trade, U.S. textile and apparel imports from our free-trade partner countries have declined 8 percent year to date in 2025 through July, while U.S. imports from top Asian suppliers have increased by double digits.
“The restoration of duty-free status for qualified goods from El Salvador and Guatemala is a critical early step for our collective industries. Restoring duty-free treatment for qualified textile and apparel goods from the CAFTA-DR region is essential to bolstering the U.S. textile supply chain and helping restore stability to this critical sector. The U.S.–Western Hemisphere supply chains stand as a bulwark against China and other Asian suppliers. We look forward to working with the Trump administration and lawmakers to find a resolution that will restore full duty-free treatment for qualified trade across this vital region,” says Kim Glas, NCTO president and CEO.