Cotton exporters in the United States continue to navigate trade policy uncertainty. The reactivation of tariffs echoes past disruptions that compromised US cotton’s largest export market — China, empowering Brazilian competition. New USTR301 actions targeting China-flagged vessels and port equipment add long-term cost uncertainty, raising questions about shipper costs. With minimal forward 2025-26 crop sales, pressure is mounting on producers and merchants across cotton and other US agricultural exports.
Meanwhile, Brazil continues to expand cost-efficient production, largely unburdened by similar trade headwinds, intensifying competition in markets where US cotton must fight harder for share.
Still, demand fundamentals are improving. USDA projects 2025-26 global mill use at 118.8 million bales, just 0.3% below last year and the second-highest level since 2020-21. Stable prices and global growth should sustain strong demand, with China, India, Pakistan, Bangladesh, Vietnam and Turkey accounting for 82% of global mill use.
The American Cotton Shippers Association (ACSA) is striving to grow global demand for US cotton through the Buy American Cotton Act and promoting cotton over synthetics through the Plant Not Plastic campaign. A shift of even 1% in global fiber demand toward cotton would add 5 million bales — a meaningful boost to consumption. Traceability continues to play a decisive factor in sourcing decisions, and ACSA continues to develop a mechanism for brands to tell their customized sustainability story, free from allegations challenging other origins.
ACSA is pushing for reforms including removing USTR301 barriers for containerized exporters, fast-tracking port and intermodal investments, and accelerating digitalization. We advocate for standardized tariffs, electronic documentation and real-time data sharing to close gaps that slow recovery and erode competitiveness.
In 2026, US cotton can succeed if policy, infrastructure and transparency improve alongside price and quality. ACSA remains committed to delivering solutions to protect our members, strengthen our supply chain and position American cotton for lasting success.