Chinese companies can buy US cotton, corn, sorghum and pork without having to pay the 25 per cent retaliatory duty. The move follows the approval of some three million tons of US soybeans for purchase with tariff waivers. There could be a second round of exemptions depending on how the trade talks progress.

Some companies are willing to buy US farm products in line with domestic demand and their purchases are made on their own decisions. Even with tariffs in place, the US sold about 64,000 tons of cotton in May. Were it not for the tariffs, the US could have been in a strong position to cater to the demand.

The US cotton industry enjoyed a 46 per cent share of all imports going into China. But that changed when China issued a 25 per cent tariff on US cotton in retaliation for tariffs placed on Chinese goods by the US. However China is still seen as a key market for US cotton and the US will promote the benefits of its cotton. Chinese mills like US cotton for its quality, its consistency and its low contamination. China is the US’ most efficient market to ship to in the world so it keeps costs down.