Cotton futures tumbled today to their lowest level since August 2020 after China, the worldâs 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 Trumpâs 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.
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Soruce: xStation5
