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NCTO urges US prez to jettison de minimis loophole via executive order

23 Jan '25

2 min read

NCTO urges US prez to jettison de minimis loophole via executive order

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Welcoming the president's executive order for a comprehensive review of the impact of unfair trade practices by China and other nations, the National Council of Textile Organisations said the order marks 'an important and long overdue step toward common-sense reform' of an outdated trade provision.
It also called for a decisive action to eliminate the de minimis loophole through executive order.

Welcoming President Donald Trump’s executive order directing federal agencies to conduct a comprehensive review of the devastating impact of unfair trade practices by China and other countries that have undermined US manufacturing and the economy, the National Council of Textile Organisations (NCTO) said the directive marks ‘an important and long overdue step toward common-sense reform’ of an outdated trade provision that has caused significant damage to the US textile industry.

The domestic textile industry has witnessed 26 plant closures and thousands of layoffs in the past few months, NCTO president and chief executive officer Kim Glas said in a statement.

“Given the overwhelming scale of the problem and the challenges faced by US Customs and Border Protection in enforcing trade laws amid this flood of de minimis packages, we urge President Trump to prioritise this particular issue and take decisive action as soon as feasible to eliminate the de minimis loophole through executive order,” he said.

“We also commend the President’s directive to review the establishment of an External Review Service to collect tariffs and other taxes on foreign entities. Such measures would serve as a deterrent to tariff evasion and provide funding for trade enforcement priorities in the new administration,” he added.

Fibre2Fashion News Desk (DS)

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