Cotton futures tumbled today to their lowest level since August 2020 after China, the world’s largest buyer of the fiber, imposed new 15% retilatory tariffs on American cotton and other U.S. agricultural products. The move comes as a direct response to President Donald Trump’s decision to raise tariffs on Chinese imports to 20%, escalating tensions in the ongoing trade dispute.
The benchmark cotton contract in New York slid as much as 3.7% on Tuesday, reaching 63.12 cents per pound, as traders reacted to concerns over declining demand from China. According to U.S. Department of Agriculture (USDA) data, China remains a crucial market for American cotton, accounting for $1.5 billion in exports last year.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOther agricultural commodities targeted by China’s retaliatory measures also saw sharp declines, adding to market uncertainty. Meanwhile, the trade battle is widening beyond China—Trump’s 25% tariffs on select Mexican and Canadian imports also went into effect. Mexican President Claudia Sheinbaum announced that Mexico is preparing countermeasures, which could further impact U.S. agricultural exports, including cotton. USDA figures show that the U.S. exported $245 million worth of cotton to Mexico last year.
Soruce: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
