Addressing a distinguished assembly of industry executives, policymakers, and trade experts at the historic Mayflower Hotel, National Council of Textile Organizations (NCTO) Chairman Chuck Hall delivered a comprehensive "State of the Industry" overview on April 16, 2026. The address, a cornerstone of the NCTO’s 22nd Annual Meeting, served as both a retrospective of the American textile sector’s recent resilience and a strategic manifesto for the coming year. Hall, who serves as the President and CEO of Spartanburg-based technical textile leader Barnet, utilized the platform to emphasize the industry’s indispensable role in national security, its multi-billion-dollar contribution to the American economy, and the urgent legislative reforms required to ensure a level playing field in a volatile global market.
The three-day summit, held from April 14 to April 16, arrived at a critical juncture for domestic manufacturers. As the industry grapples with the dual pressures of global supply chain recalibration and aggressive foreign competition, Hall’s remarks provided a clear-eyed assessment of the challenges faced in 2025 while celebrating significant policy achievements that have helped stabilize the domestic production base. The event underscored the NCTO’s position as the primary advocacy voice for the U.S. textile supply chain, which spans from fiber production to finished apparel and high-tech industrial applications.
A Chronology of the 22nd Annual Meeting
The NCTO’s 2026 gathering was structured to facilitate high-level dialogue between industry stakeholders and federal officials. The proceedings commenced on April 14 with a series of closed-door committee meetings focusing on trade policy, government procurement, and environmental sustainability standards. These sessions allowed member companies to align on technical details regarding the "yarn-forward" rule of origin and domestic content requirements for federal contracts.
On April 15, the focus shifted to legislative outreach. NCTO members engaged in a series of briefings with congressional staff and representatives from the Department of Commerce and the Office of the United States Trade Representative (USTR). The discussions centered on the impact of "de minimis" imports and the necessity of maintaining robust Section 301 tariffs on Chinese textile and apparel products.
The culmination of the event occurred on April 16, with Chairman Chuck Hall’s State of the Industry address. Hall’s speech was supported by a detailed data infographic released by the NCTO, which provided a statistical snapshot of the industry’s economic health. Following the address, the meeting concluded with the election of new board members and the reaffirmation of the organization’s commitment to fostering innovation in technical textiles—a sector where Hall’s own company, Barnet, has been a pioneer for decades.
The Economic Vitality of the U.S. Textile Industry
A central theme of the 2026 meeting was the sheer scale and economic significance of the domestic textile supply chain. According to data highlighted during the summit, the U.S. textile and apparel industry remains a massive economic engine, with annual shipments exceeding $65 billion. The sector is responsible for providing approximately 500,000 jobs across the United States, supporting thousands of families in rural communities, particularly in the Southeast.
Hall noted that the industry is not merely a relic of the industrial past but a high-tech vanguard. The U.S. is a world leader in the development of technical textiles, including flame-resistant fabrics for first responders, antimicrobial textiles for the healthcare sector, and carbon fiber composites for the aerospace and automotive industries. In 2025 alone, the U.S. textile industry invested over $2 billion in new plants and equipment, signaling a long-term commitment to domestic manufacturing despite global headwinds.
The export market also remains a pillar of the industry’s strength. U.S. exports of textiles and apparel reached nearly $25 billion in the previous fiscal year, with the majority of these goods destined for Western Hemisphere partners. This "nearshoring" trend is bolstered by free trade agreements like the USMCA and CAFTA-DR, which incentivize the use of U.S.-made yarns and fabrics in regional garment assembly.
Strategic Policy Priorities for 2026
The core of Hall’s address was the unveiling of the NCTO’s 2026 policy agenda. Chief among these priorities is the reform of the "de minimis" loophole, specifically Section 321 of the Tariff Act of 1930. Under current law, packages valued at $800 or less can enter the United States duty-free and with minimal inspection. Hall argued that this provision is being exploited by foreign e-commerce giants to flood the U.S. market with low-cost, subsidized, and often non-compliant products, undermining domestic manufacturers and retailers alike.
"The de minimis threshold has become a superhighway for illicit goods and unfair competition," Hall stated in his prepared remarks. "Closing or significantly reforming this loophole is not just an economic necessity; it is a matter of consumer safety and national integrity."
Furthermore, the NCTO is calling for the rigorous enforcement and expansion of the Berry Amendment and the Kissell Amendment. These "Buy American" provisions require the Department of Defense and the Department of Homeland Security to source textiles and clothing from domestic producers. Hall emphasized that maintaining a robust domestic textile base is a matter of national security, ensuring that the U.S. military is not dependent on adversarial nations for essential gear, from uniforms to parachutes and tents.
Other key policy objectives for 2026 include:
- Strengthening Trade Enforcement: Increasing resources for U.S. Customs and Border Protection (CBP) to combat transshipment and forced labor in the global textile supply chain.
- Sustainability and Circularity: Advocating for federal incentives that support the transition to recycled fibers and sustainable manufacturing processes, positioning the U.S. as a global leader in "green" textiles.
- Energy and Regulatory Reform: Addressing the rising costs of energy and ensuring that environmental regulations do not disproportionately disadvantage domestic producers compared to international competitors with lower standards.
National Security and Supply Chain Resilience
The strategic importance of the textile industry was a recurring motif throughout the 22nd Annual Meeting. The disruptions of the early 2020s served as a wake-up call regarding the fragility of global supply chains. Hall argued that the U.S. textile industry is a "critical infrastructure" sector that proved its worth by pivoting to produce billions of units of Personal Protective Equipment (PPE) during past national emergencies.
"We cannot afford to outsource our national security to our competitors," Hall remarked. He pointed out that the technical textile sector is increasingly integrated into the defense industrial base. From high-strength fibers used in ballistic vests to specialized fabrics for stealth technology, the innovations coming out of U.S. mills are vital to the modern warfighter. The NCTO’s 2026 roadmap seeks to ensure that the Department of Defense continues to view the textile industry as a strategic partner rather than a mere commodity provider.
Industry Reactions and Broader Implications
The reactions from the floor of the Mayflower Hotel were largely supportive of Hall’s aggressive policy stance. Executives from various sectors of the industry—ranging from cotton ginners to synthetic fiber manufacturers—echoed the sentiment that the next 12 to 18 months will be a "defining period" for American manufacturing.
"Chairman Hall’s message is exactly what the industry needs to hear right now," said one attendee from a North Carolina-based spinning mill. "We are ready to compete with anyone in the world, but we cannot compete against foreign governments that subsidize their industries while our own trade laws are being bypassed by e-commerce loopholes."
Trade analysts suggest that the NCTO’s focus on de minimis reform and trade enforcement reflects a broader shift in Washington toward "industrial policy." There is growing bipartisan consensus that the U.S. must protect its manufacturing core to maintain its technological edge and economic sovereignty. The NCTO’s 2026 priorities align closely with this sentiment, suggesting that the organization will find receptive ears on Capitol Hill.
The implications of Hall’s roadmap extend beyond the textile sector. By advocating for stronger domestic content rules and fairer trade practices, the NCTO is setting a precedent that other manufacturing sectors may follow. The emphasis on "nearshoring" also has significant geopolitical implications, as it strengthens economic ties with Latin American and Caribbean partners, providing an alternative to reliance on East Asian supply chains.
Looking Ahead: The Path for 2026
As the NCTO’s 22nd Annual Meeting concluded, the mandate for the organization was clear: continue to bridge the gap between the factory floor and the halls of Congress. Chuck Hall, through his leadership at both the NCTO and Barnet, embodies the industry’s transition toward a more technical, sustainable, and politically engaged future.
The "State of the Industry" overview provided more than just a list of grievances; it offered a vision of an American textile industry that is modern, competitive, and essential. With the 2026 policy priorities now firmly established, the NCTO moves into the remainder of the year with a focus on legislative action. The success of these efforts will likely determine whether the domestic textile industry continues its trajectory of high-tech growth or faces renewed pressure from an increasingly complex global trade environment.
As the meeting adjourned, the sentiment among the nearly 300 delegates was one of cautious optimism. The challenges are significant, but as Chairman Hall noted in his closing remarks, "The American textile industry has been the backbone of this country since the Industrial Revolution. We have reinvented ourselves before, and we are doing it again today. Our best days are not behind us; they are being woven right now in our mills across the nation."
