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Reggie Vandenbosch, of Valley Forge Flag, one of the largest U.S. manufacturers, emphasized the importance of the legislative efforts.

With a surge of American flags made overseas entering the market, consumers may not realize the impact on local manufacturers and the quality of the flags displayed.

"We gauge it by the flags we receive for retirement. Before the lockdown, we might get one or two Chinese-made flags. Now, over 75% are made in China," Spinelli said.

Spinelli and other American flag retailers are working with Congress to pass the "Make American Flags in America Act," which targets online retailers that falsely claim their flags are American-made.

A visual inspection shows the difference between the flags. American flags are made from high-quality materials and have clear labeling. In contrast, Chinese-made flags often lack proper labeling, and are made from lower-quality materials.

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"The U.S. flag industry domestically cannot fight back. It's too huge, it's a wildfire out of control. The federal government really needs to step in," Spinelli added.

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The influx is largely due to online purchases and deceptive marketing tactics. According to the Flag Manufacturers Association of America, 94% of American flags are manufactured in the United States. Of the 6% imported, most come from China.

Julye Spinelli, owner of Saratoga Flag Company, raised concerns about the increasing number of Chinese-made flags sold in the U.S.

In July, the "All-American Flag Act" was passed, requiring the federal government to purchase flags entirely made in the U.S. The act differs from the proposed "Make American Flags in America Act," which specifically addresses misleading marketing.

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"We're going to see our flag industry disappear fairly quickly because there's a full-court press going on right now to take over the flag industry," Vandenbosch warned.

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