What's the Tariff on Cotton (Raw)?
US is net cotton exporter.
Current Tariff Rate
0%
Pre-2025 Rate
0%
Rate Increase
+0pp
Price Impact
+0%
+$0
Real-World Price Impact
Before Tariffs
$350
1 bale cotton
After Tariffs
$350
1 bale cotton
That's $0 more per unit — a 0% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Raw cotton's zero-tariff status reflects one of the great reversals in American trade history. The US was built on cotton — it was the nation's largest export for most of the 19th century, and the entire Southern economy revolved around its production. Today, the US remains the world's third-largest cotton producer and its largest exporter, shipping 16 million bales annually to textile mills in Vietnam, Bangladesh, India, and China. There is no tariff because there is no need for one: American cotton is globally competitive, benefiting from massive mechanized farms in Texas, Mississippi, and Georgia that produce cotton at costs rivaling any nation. The irony deepens when finished textiles return: cotton grown in Texas, shipped to Vietnam, sewn into a t-shirt, and reimported faces the very tariffs that raw cotton escapes. This circular trade pattern — exporting raw materials and importing finished goods — mirrors patterns the US once criticized developing nations for.
📦 Supply Chain
Primary Origin
US (net exporter)
Made in USA
100%
Import Volume
/bin/bash.1B
Alternatives
N/A — US is world's largest exporter
📅 Tariff Timeline
1930
Smoot-Hawley sets cotton tariffs (largely irrelevant as US is exporter)
Various2005
WTO rules US cotton subsidies illegal (Brazil case)
0%2014
US settles cotton subsidy dispute with 00M payment to Brazil
0%2025
No tariff action — US remains dominant exporter
0%👥 Consumer Impact
Households Affected
0M
Annual Cost Per Household
/bin/bash
💡 Did You Know?
- •The US exports 80% of its cotton crop — making it the world's largest cotton exporter despite not being the largest producer
- •Texas alone produces more cotton than most countries, with 5.3 million acres planted annually
- •A cotton t-shirt may travel 20,000 miles: US-grown cotton shipped to Vietnam for sewing, then back to US stores
Tariff Details
- HTS Code
- 5201.00
- Current Rate
- 0%
- Pre-2025 Rate
- 0%
- Tariff Type
- None (US exporter)
Legal Authority
None (US exporter)
Effective: 2025
Tariff imposed under presidential trade authority
The tariff on Cotton (Raw) is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 0% tariff on Cotton (Raw) is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 0% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $350 → $350
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