The US Department of Agriculture (USDA) has announced payments under the 2026 Pima Agriculture Cotton Trust Fund and the 2026 Agriculture Wool Apparel Manufacturers Trust Fund, aimed at supporting domestic textile and apparel manufacturers.

The move comes as the US textile industry continues to face structural challenges stemming from trade agreements and tariff imbalances over the past two decades. These factors have contributed to a broader decline in domestic manufacturing, including textiles, the USDA said in a press release.

USDA has announced 2026 payments under the Pima Cotton and Wool Trust Funds to support domestic textile manufacturers.
The schemes aim to offset tariff inversion impacts and boost competitiveness.
Backed by the 2014 Farm Bill, the programmes provide financial relief to cotton and wool producers, encouraging domestic production and industry revival.

A key concern highlighted is tariff inversion, where duties on imported fabrics exceed those on finished apparel, incentivising offshore production. The trust fund payments are designed to offset this imbalance by providing financial support equivalent to the benefits manufacturers would receive under more favourable tariff conditions.

“US textile companies produce world-renowned quality products and employ a highly skilled workforce,” said Stephen A Vaden, deputy secretary of Agriculture. “These payments strengthen our domestic manufacturers and ensure a fair playing field for American textiles, helping rebuild this important industry. More American companies should take advantage of this program and manufacture more of the clothing we all wear here in the USA.”

The Pima Cotton Trust, established under section 12314 of the 2014 Farm Bill, is funded through 2031 with $16 million annually from the Commodity Credit Corporation (CCC). It aims to mitigate economic injury caused by higher tariffs on cotton fabric compared with certain cotton apparel imports.

Under the programme, 25 per cent of funds are allocated to associations promoting Pima cotton, another 25 per cent to US yarn spinners producing ring-spun cotton yarn, and the remaining 50 per cent to domestic manufacturers that cut and sew cotton shirts using imported fabric.

Similarly, the Wool Trust, created under Section 12315 of the 2014 Farm Bill, is funded through 2031 with up to $30 million annually. It supports manufacturers affected by tariff disparities in wool products.

The Wool Trust provides payments to worsted wool fabric producers, enables monetisation of tariff-rate quotas, offers duty compensation for wool inputs, and refunds duties on selected wool imports.

Applications for the Pima Cotton Trust close on March 15 each year, while the deadline for the Wool Trust is March 1. Payments are mandated to be made by April 15.

Fibre2Fashion News Desk (SG)

China’s value-added industrial output rose 6.1 per cent year on year (YoY) in the first quarter of 2026, reflecting a steady recovery in the country’s industrial sector, according to data released by the National Bureau of Statistics (NBS).

The growth rate was 1.1 per cent points higher than that recorded in the fourth quarter of 2025, indicating improved momentum in industrial activity. On a month-on-month (MoM) basis, industrial output increased by 0.28 per cent in March.

China’s industrial output grew 6.1 per cent year on year (YoY) in Q1 2026, accelerating from the previous quarter.
Growth was driven by manufacturing and mining, while utilities posted moderate gains.
On a monthly basis, output rose 0.28 per cent in March, signalling stable industrial momentum.
The data reflects resilience in large-scale enterprises, supported by improving demand conditions.

Industrial output, a key economic indicator, measures the activity of large enterprises with an annual main business turnover of at least ¥20 million (~$2.91 million).

Sector-wise, the mining industry’s value-added output increased by 6 per cent year on year (YoY) during the quarter, while the manufacturing sector registered a stronger growth of 6.4 per cent. Meanwhile, the production and supply of electricity, heat, gas, and water rose by 4.3 per cent, said Chinese media reports.

Fibre2Fashion News Desk (JP)

Italy’s apparel exports declined **.** per cent year on year to $*,***.** million in January ****, down from $*,***.** million in January ****. Imports also fell **.** per cent to $***.** million, compared to $*,***.** million a year earlier, indicating a broad-based slowdown in trade flows at the start of the year, according to *fashion.com/market-intelligence/texpro-textile-and-apparel/” target=”_blank”>sourcing intelligence tool TexPro.

The January contraction comes amid a broader environment of cautious retail demand and tighter inventory management across Europe. Nevertheless, the strong full-year **** figures indicate that Italy’s apparel sector continues to maintain stable trade fundamentals, supported by diversified export markets and a balanced sourcing network.