U.S. Defense Authorization Act Strengthens Domestic Textile Procurement, New Barriers for Global Supply Chains

The U.S. military textile market is undergoing a structural transformation driven by legislation. The recently passed House version of the FY2025 National Defense Authorization Act (NDAA) includes provisions explicitly strengthening the Berry Amendment's procurement requirements. This means textiles such as uniforms, tents, and sleeping bags procured by the Department of Defense will face stricter mandates to use domestically produced materials and finished goods.

This move is not an isolated incident. Since 2015, the U.S. Congress has repeatedly amended the Berry Amendment, progressively tightening the definition of 'Made in America.' In 2023, the DoD faced congressional scrutiny for relying on imported fabrics for some military tents. The current NDAA provisions can be seen as a systematic fix for such loopholes.

Industry Impact

For Chinese textile exporters, the most immediate impact is order substitution. Although smaller than the civilian market, the U.S. military textile market offers high value-added and stable orders. In 2023, DoD textile procurement totaled approximately $1.2 billion, with about 15% involving imported fabrics or finished goods. After the new NDAA rules take effect, this import portion will likely be redirected to U.S. domestic producers.

A deeper effect lies in demonstration. Other U.S. government agencies—such as the Department of Veterans Affairs and the Department of Homeland Security—often benchmark their uniform procurement against DoD standards. Once military textiles are fully localized, these agencies may follow suit, creating a closed market with annual procurement exceeding $3 billion.

This is not positive news for Southeast Asian textile nations. While the U.S. 'friendshoring' strategy encourages sourcing from countries like Vietnam and India, the Berry Amendment's 'Made in America' requirement cannot be circumvented through transshipment. Vietnamese textile companies must establish U.S. factories to enter the military market. Currently, only a few South Korean and Japanese companies have set up military textile production lines in the U.S.

Practical Recommendations

For Procurement Managers - Assess compliance risks in existing U.S. military orders, identify supply chain links involving imported materials, and prepare alternative solutions in advance. - Monitor the final NDAA text for detailed definitions of 'source of materials' and 'processing steps' to avoid rising compliance costs due to ambiguous standards. - Consider partnerships with small U.S. textile firms that hold 'Made in America' certification for government bids, but evaluate their capacity and quality control capabilities.

For Export Companies - Adjust U.S. market strategy to focus on civilian textiles, as the barrier to military orders has substantially increased. - Investing or partnering to set up finishing plants in the U.S. is the only viable path to the military market. Prioritize locations in Georgia or South Carolina, which have mature textile industry ecosystems and labor pools. - Explore clean energy subsidies for textile manufacturing under the U.S. Inflation Reduction Act to reduce operational costs for U.S. facilities.