The US House of Representatives' latest passage of the National Defense Authorization Act (NDAA) includes a provision to strengthen domestic textile procurement, sending ripples through the global textile industry. The clause aims to fully enforce the Berry Amendment, requiring that textiles purchased by the US military—from combat uniform fabrics to tent canvas—be 100% domestically produced. While appearing as a minor adjustment to internal procurement rules, it signals a clear shift toward supply chain deglobalization amid escalating trade tensions.
Event Background
Since its enactment in 1941, the Berry Amendment has been a cornerstone law protecting the US textile industry, mandating that the Department of Defense prioritize US-made textiles, apparel, and footwear. However, the new NDAA 'support provisions' go beyond reaffirming old rules by adding oversight and enforcement mechanisms, including requirements for the DoD to regularly report compliance and imposing stricter penalties for violations. This means that past gray areas—such as products using imported semi-finished materials with final assembly in the US—will face tougher scrutiny.
The National Council of Textile Organizations (NCTO) welcomed the move, calling it a 'vote of confidence in domestic textile manufacturing.' Public data shows the US textile industry directly employs about 550,000 people with an annual output of approximately $70 billion. However, the sector has lost significant capacity over the past two decades due to global competition, particularly in chemical fiber and fabric production. This policy tightening is essentially an attempt by the US government to use military orders—a stable anchor—to inject life into the domestic textile industry.
Industry Impact
For overseas suppliers, the direct shock is order loss. According to industry open data, the US military spends billions of dollars annually on textiles, a significant portion of which comes from overseas, especially China, Vietnam, and Bangladesh. As the world's largest producer of chemical fibers and fabrics, China previously held a market share through indirect supply of non-direct military items like tents and backpack fabrics. Once the new rules take effect, these orders will be forced to shift to US domestic companies.
The deeper impact lies in the demonstration effect on supply chains. The DoD's procurement standards often serve as a benchmark for other government agencies and even commercial buyers. If the NDAA provisions make 'Made in USA' a hard requirement for military textiles, it could trigger a chain reaction—for instance, the Department of Homeland Security or FEMA may follow suit, requiring uniforms and relief supplies to use domestic materials. For Chinese textile exporters relying on US government procurement orders, this means reassessing product portfolios and shifting to non-military civilian markets.
Additionally, the policy will accelerate the regionalization trend in the global textile industry. Countries like Vietnam and Bangladesh, which have absorbed significant textile capacity from China, still heavily depend on Chinese imports for upstream high-end fabrics and accessories. The US strengthening domestic procurement may prompt these nations to accelerate building their own chemical fiber and fabric capacity, further weakening China's hub position in global textile intermediate trade.