USTR Criticizes China, India, EU For ‘Unfair Trade Practices’ Impacting U.S. Textile Industry
The United States has publicly criticized China, India, the European Union, and several other nations for what it described as “unfair trade practices” that are undermining the American textile and apparel industry. In a statement shared on social media, the Office of the United States Trade Representative (USTR) said these practices have contributed to the closure of 28 textile plants in the U.S. over the past two years, particularly in the southeastern region.
According to the USTR, Chinese manufacturers benefit from state-backed, non-market policies that give them “unfair competitive advantages,” enabling them to sell products at “artificially low prices” that undercut fair competition. China accounted for 21% of the United States’ $79.3 billion in apparel imports in 2024. The USTR also highlighted the role of Chinese e-commerce platforms, which are responsible for over 30% of daily de minimis shipments—small packages that bypass standard tariffs and customs checks.
“The influx of cheap apparel has decimated local industries, particularly in the Southeast United States,” the USTR stated.
India was also targeted for imposing “high tariffs, opaque quality control measures, and unpredictable import licensing requirements” that disadvantage American exporters. The USTR objected to India’s production-linked incentive (PLI) schemes, arguing that they offer Indian textile manufacturers an unfair advantage in global trade.
The European Union faced criticism over “non-tariff barriers” that allegedly impose high compliance costs on U.S. exporters. The USTR cited the EU’s Strategy for Sustainable and Circular Textiles, which includes stringent eco-design regulations, steep extended producer responsibility (EPR) fees, and the proposed digital product passport system—describing the implementation timelines as “unrealistic.”
Beyond China, India, and the EU, the USTR also named Bangladesh, Vietnam, Kenya, Cambodia, Turkey and Peru as contributors to what it termed an increasingly “unbalanced trading system.”
While no specific retaliatory trade actions were announced, trade analysts believe the statement is aimed at building domestic political momentum and exerting pressure on global partners ahead of possible World Trade Organization (WTO) consultations or bilateral negotiations.
The U.S. textile industry—long viewed as a symbol of the broader impacts of globalization—has re-emerged as a key issue in American trade discourse, particularly during election cycles, when the loss of domestic manufacturing jobs becomes a central talking point.
