Beverly Knits’ Stand Against the De Minimis Loophole
History of American Textile Manufacturing
At Beverly Knits, we’ve proudly produced knit fabric and textiles in the USA for over 40 years. As one of the largest circular knitting operations in the country, we are committed to the production of high-quality Lycra fabric, jersey fabric, and outdoor fabric. But today, we find ourselves facing a serious challenge. The rise of Chinese e-commerce giants like Shein and Temu, who exploit the de minimis trade exemption, is threatening the survival of American textile mills and the entire textile industry.
The de minimis loophole allows items valued under $800 to enter the U.S. without paying duties. Companies like Shein use this exemption to flood the U.S. market with cheap, low-quality goods, shipping directly to consumers without following the same regulations we do. These print on print fabrics and mass-produced items are sold at prices that American manufacturers simply cannot match. As a result, Beverly Knits, like many others, is now operating at just 60% capacity, with our workforce reduced from 375 employees to fewer than 200.
The De Minimis Loophole: A Threat to American Jobs
This loophole is not just a problem for the textile industry—it affects textile mills and manufacturers across various sectors in the U.S. The e-commerce boom, accelerated by the pandemic, has made this issue worse. Companies shipping water-resistant fabrics, Lycra fabric, and even antimicrobial underwear into the U.S. are not held to the same standards as domestic producers. These imports, arriving duty-free, make it nearly impossible for us to compete. The result? Over the past year alone, 21 U.S. textile plants have closed, leaving thousands of workers without jobs. The future of Made in USA products, known for their quality and durability, is at risk.
How the De Minimis Loophole Affects US Textile Manufacturers
At Beverly Knits, we produce a variety of fabrics, from durable outdoor fabrics to breathable jersey fabric, and specialty items like spandex fibers and antimicrobial underwear. Our customers trust the quality of Made in USA products, and we take pride in creating textiles that meet high performance standards—whether they need water-resistant fabrics for the outdoors or moisture-wicking Lycra fabric for activewear.
Unfortunately, the de minimis loophole allows companies to bypass the costs of regulations and duties that we face. This is unfair competition. These imports hurt American textile mills that adhere to stringent labor laws, environmental standards, and quality control measures.
The Need for Government Action
The Biden administration has proposed changes to the de minimis exemption, but the regulatory process takes time. Meanwhile, American manufacturers like Beverly Knits are struggling to stay afloat. Our textile industry needs the government to act swiftly.
Without immediate action, the future of textiles made in the USA is in jeopardy. As our CEO Ron Sytz has warned, “Don’t think it’s just going to be textiles—it’s going to be anything and everything that can be shipped in a box.” This issue is bigger than just fabrics—it will impact industries across the board, from Lycra fabrics used in fashion to water-resistant fabrics used in industrial applications.
Why American Manufacturing Matters
Beverly Knits believes in the power of American textile manufacturing. For over four decades, we’ve weathered economic challenges, and we've continued to innovate. Our knit fabrics, whether used in high-performance activewear or outdoor fabric applications, stand as a testament to American craftsmanship. But the de minimis loophole threatens the very foundation of our industry.
At the core of this fight is the survival of U.S. jobs and the businesses that uphold the values of quality and integrity. If this loophole isn’t closed, we fear that more jobs will be lost, more textile plants will shut down, and the "Made in USA" label will become a thing of the past.
Conclusion: A Call for Urgent Action
The stakes couldn’t be higher for American manufacturing. We need our government to protect the future of Made in USA products and level the playing field for domestic manufacturers. The de minimis loophole has given foreign competitors an unfair advantage at the expense of American workers and businesses.
The future of Beverly Knits—and countless other American manufacturers—depends on swift action to close this loophole. Without it, the entire textile industry, from jersey fabrics to antimicrobial underwear, will face continued threats from unfair foreign competition. It’s time for the government to take a stand and support American businesses before it’s too late.
Comments