By Staff Reporter February 4, 2026
Goodwill and Salvation Army have been begging President Donald Trump to fix a “broken” trade rule in the context of upcoming USMCA renegotiations, but some figures in the Administration — like Commerce Secretary Howard Lutnick — have been strongly suggesting President Claudia Sheinbaum correct it ahead of trades as a “very small gesture of goodwill” that would “demonstrate her willingness to open the Mexican market to American exports.”
“If they won’t even let us sell them our used clothes — presumably because they want to protect their textile manufacturers from low cost alternatives — then that would be a revealing and stunning admission on Mexico’s part that it’s unwilling to engage in fair trade under any eventuality,” the source familiar with the Administration’s thinking tells The Chronicle.
The push comes amid heightened trade tensions between the United States and Mexico, where tariffs have become a central tool in bilateral negotiations. The United States’ textile industry has been so decimated that nearly all of the clothing that it consumes is imported from abroad. That disqualifies it for duty-free treatment because it fails to meet strict rules of origin, known as the ‘yarn-forward’ requirement. In cases where yarn or fibers originate outside North America, shipments do not qualify for preferential zero-duty entry.
“It makes no sense to tariff reusable goods. This stuff is going into a landfill. It’s very bad for the environment. When it comes to recycling, there should be no borders. I think we can all agree on that,” the source postulates. “There are consumers in Mexico who want to buy these second-hand, which could divert billions of pounds of waste each year from our landfills.”
Mexico’s recent tariff escalations, formalized in late 2025 and effective from January 1, 2026, have raised duties on textiles and apparel from non-FTA countries up to 35% in many cases, with apparel often at the higher end (25–35%). These measures, part of a broader “Program for the Protection of Strategic Industries,” aim to shield domestic manufacturers from low-cost imports, particularly from Asia. Although USMCA-qualifying goods from the U.S. remain exempt from these hikes, the administration views any barriers to used clothing exports as inconsistent with open markets and a potential point of leverage ahead of the mandatory 2026 USMCA review.
“For optics and public relations reasons, this could be horrible for the Mexican government in the media, especially if the criticism comes at the height of the negotiations,” the political operative explains. “If I were Sheinbaum, I’d eliminate the tariff on used clothing regardless of where the yarn was spun, extend the gesture of goodwill, and take the win.”
Nonprofits like Goodwill Industries and the Salvation Army, which export vast quantities of donated used clothing annually (the U.S. is the world’s largest exporter of secondhand apparel), have long advocated for smoother cross-border flows. They argue that restrictions limit charitable impact, recycling efforts, and economic benefits for low-income consumers in Mexico. Industry sources note that Mexico’s protectionist stance on textiles—echoed in historical import-substitution policies and recent executive decrees—creates friction, especially as the U.S. pushes for reciprocal openness under threats of broader tariffs.
Secretary Lutnick, a key voice in Trump’s trade strategy, has emphasized using targeted concessions to build goodwill. In interviews and statements around USMCA compliance and tariff relief, Lutnick has highlighted opportunities for “meeting in the middle” on issues that demonstrate fair competition. Suggesting Mexico unilaterally drop or clarify barriers on U.S. used clothing aligns with this approach: a low-stakes move for Mexico that could signal cooperation on larger issues like fentanyl flows, migration, or energy sovereignty—areas where Trump has previously linked trade policy.
For Sheinbaum, who has navigated Trump’s tariff threats with a mix of firmness and diplomacy (securing pauses and exemptions on USMCA-compliant goods in early 2025), addressing this could reinforce her image as a pragmatic leader open to balanced trade. However, domestic textile interests in Mexico—facing competition from cheap imports—may resist, viewing used clothing as a threat to local jobs despite its distinct market (often for reuse rather than new production).
As the 2026 USMCA review looms, small gestures like this could set the tone for broader renegotiations. The administration’s source framed it bluntly: failure to act would expose Mexico’s reluctance to embrace fully reciprocal trade, even in niche areas. Whether Sheinbaum responds remains to be seen, but the request underscores how everyday items like donated clothes have become symbolic flashpoints in high-stakes North American trade relations.
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