Argentinas textile sector continues to plummet

The Argentine textile industry fell by 7.8% in 2025, during which the Argentine Textile Industries Federation (FITA) called the sector’s “hardest moment.” According to official figures, the industry was the only one to experience deflation in January — a fall of 0.5%, while prices that month increased by 2.9%. Argentine business leaders said they were hit by Chinese imports and slumping demand as the Milei administration lowered or outright eliminated tariffs. Only in December 2025, the sector’s activity contracted by 25.7% compared to the same month in the previous year, said a report by FITA released on Thursday. The federation representing textile businesses said that one of the most worrying indicators is the use of factories’ installed capacity — in December it operated at around 35% and in January at 34%. Employment in the sector has been falling continuously year-on-year since February 2024, two months after Javier Milei took office. Between December 2023 and November 2025, more than 19,000 formal jobs were lost. In January 2026, 16,582 tons of textile products—yarns, fabrics, and garments—were imported for US$ 39 million, representing a year-on-year drop of 31% in volume and 40% in value. This decrease showed a contraction in imports of inputs. However, in the same period, imports of finished garments grew strongly: 129% in quantity and 91% in value compared to January 2025. “When industrial employment declines and, at the same time, imports of finished products increase under conditions inconsistent with the sector’s history and international production realities, the impact on domestic production is inevitable and worrying,” Luis Tendlarz, President of FITA, said in a statement.  “Ensuring balanced competitive conditions is key to enabling the Argentine textile industry to sustain employment and strengthen the productive fabric throughout the country,” he said, echoing the demands of industry leaders across sectors for the government to lower taxes.