In a retaliatory move the Chinese Ministry of Commerce has announced plans to impose a 25 per cent tariff on 106 US goods, including agricultural products such as cotton, soybean, corn and beef. The effect of the Chinese tariff is expected to impact exports valued at around $50 billion from the US.

This move could affect the entire US cotton industry, as China imports a significant amount of US cotton each year, along with other leading importers like Vietnam, Turkey, Indonesia and Pakistan. This would seriously affect US cotton and agricultural exports and correspondingly affect US farmers feels Darren Hudson, Professor and Combest Chair of Agricultural Competitiveness at Texas Tech University. More cotton would be sent to Southeast Asia and away from China, he added.

In March, President Trump proposed a 25 per cent tariff on steel imports and 10 per cent on aluminium imports, while exempting some countries. This measure was aimed at protecting US jobs and American innovation and its industry. At that time, the effect on the US cotton industry was not foreseen to be serious as they felt that the Chinese retaliation would target US soybean.