A rare alliance of US mills, apparel importers, and retailers has proposed that tariff credits could double textile exports to the Western Hemisphere and create more than 56,000 jobs. On July 6, four trade organizations jointly requested the Office of the US Trade Representative (USTR) to allow companies to earn credits when purchasing US textiles or qualifying apparel from United States-Mexico-Canada Agreement (USMCA) and Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) partners.
Mexico's apparel nearshoring narrative is entering a more arduous phase. While the country remains a cornerstone of the US apparel market due to its geographic proximity and the USMCA framework, recent data from TexPro signals growing structural tensions. Between January and April 2026, Mexico’s apparel exports stood at 1.51 billion USD—a marginal increase from the previous year, yet still significantly trailing the 2023 peak. Behind these figures lies an increasingly lopsided dependency: approximately 96 percent of Mexico’s total apparel exports are destined for the United States.
Amid the storm of inflation hitting almost all aspects of household spending in the United States, one sector seems immune to the unstoppable trend of rising prices. While housing costs have soared, grocery bills continue to creep up, and energy prices further strain budgets, the apparel and footwear category exhibits a starkly contrasting phenomenon. Consumers now enjoy much better products compared to two decades ago, yet with very minimal price increases.
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