As a new administration takes office in the United States, the retail industry is watching what will happen with trade. While tariffs could hike the import price of finished goods, they would also have an impact on the cotton market.

Any trade conflicts with China could disrupt a key export destination for U.S.-grown cotton if China pushes back with its own tariffs, as it did in 2018. “China just didn't take our increases…sitting down,” said Jon Devine, senior economist at Cotton Incorporated. “They did have some retaliation, and one of the first products to be hit in terms of the U.S. trade to China was cotton.”

Listen to this chat between Devine and Alex Harrell, staff writer at Sourcing Journal, to hear more about what to watch for in the next Trump term and whether a recession is likely in the next year.

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