Cotton industry information resource Cotlook has said in its market report for March that fluctuations in the course of the month “were somewhat more volatile than those seen in recent months”.

It said this volatility was an early reflection of the trade turmoil that has followed widespread imposition of tariffs and counter-tariffs following the announcement from US president, Donald Trump, on April 2.
In fact, the changes in tariff policies had already begun to kick in for cotton in March.

The US doubled tariffs on Chinese imports to 20% on March 4. The government in China responded with a 15% levy on US cotton imports starting on March 10. April announcements have only made the situation more tense.

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