Navigating the Cotton Trade: Increased Production Meets Escalating Tariffs.
Washington, DC — The cotton industry is facing a shift as production is set to hit 25.9 million tones in the 2024/25 season, a 7.38% increase from last year. However, demand is growing at a slower pace—only 2.27%, reaching 25.5 million tones. This imbalance, combined with rising tariffs and market pressures, is expected to impact global trade.
Global Trade & Tariff Impact
The global cotton trade is expected to remain steady at 9.9 million tones, but tensions between China and the USA—two major players—are putting pressure on cotton lint trade. Any changes in trade policies could send ripple effects across the industry.
During past trade disputes, China shifted cotton imports to Brazil and Australia. If tariffs between the US and China continue rising in 2025, these countries could benefit once again. Meanwhile, the USA has been exporting more cotton to Pakistan and Vietnam, adjusting its market strategy.
Keeping Up with Market Data
To ensure accurate and timely data, cotton balance sheets have been moved to the ICAC Data Dashboard. This update guarantees real-time access to market trends and minimizes errors. While data is still included in this report, users are encouraged to check the Dashboard for the latest insights.
Leadership Update
Dr. Matthew Looney has stepped down as Data Scientist at the International Cotton Advisory Committee (ICAC). Cotton This Month is now authored by Parkhi Vats, ICAC Economic Affairs Officer, who is available for comments and inquiries.
Subscribers can log in to access Cotton This Month. If you’re not subscribed yet, visit our website. The next issue will be out on May 1, 2025.
About the International Cotton Advisory Committee (ICAC)
Since 1939, the ICAC has been a key player in supporting a strong and transparent global cotton economy. ICAC provides valuable insights, technical expertise, and a global platform for industry discussions. Members gain access to cutting-edge research, training programs, and innovative tools, helping shape the future of sustainable cotton. Recognized by the United Nations, ICAC is the only intergovernmental body dedicated entirely to cotton.
For more information, visit our website.
