The Trump administration is moving to pay more money to companies that make embroideries, a move that could make it harder for some to compete in a rapidly evolving market.
The new payments will go into effect this fall and allow for some embroiderier firms to continue to operate, but it’s unclear when they will start.
The move could affect a range of embroiderying companies, including American Apparel, which made its first $1 billion profit in 2018.
“There are a lot of things that the federal government is looking at,” said Paul Koester, president of the embroidering trade association American App.
There are two types of embroiders: one that uses silk thread and another that uses cotton thread.
The U.S. Department of Agriculture said it will give money to producers who make the silk thread embroideried fabric, and the Agriculture Department will give cash to producers of the cotton thread embroidered fabric.
Koester said the government would try to make the payments by the end of the year, but the timing could depend on the outcome of a dispute with American App and other embroiderie firms.
American Apparel also has faced some problems.
A federal court in Maryland ruled last year that American App was using fraudulent practices to pay workers less than minimum wage.
In a separate case, the Supreme Court rejected the federal agency’s attempts to prevent a state from suing American App over the practice.