LUBBOCK, TX – Tariff costs are moving through global apparel supply chains in ways that could influence textile sourcing and, ultimately, cotton demand, according to trade analyst Robert Antoshak of Gherzi Americas.
Antoshak says U.S. importers technically pay tariffs at the border, but buyers often seek lower factory prices from overseas suppliers to recover part of that cost. Consumers can still face higher retail prices even when foreign manufacturers absorb part of the tariff.
The sourcing response also matters for cotton. Antoshak says apparel orders are shifting among Asian suppliers such as Bangladesh, Vietnam, Cambodia and Indonesia rather than returning broadly to U.S. factories. That keeps textile demand concentrated overseas.
He also warns that tariff-related factory discounts can become embedded in future pricing, even if importers later receive tariff refunds. Suppliers may have little leverage to recover those concessions once they become part of the base price.
For U.S. cotton growers, the larger issue is where textile production ultimately settles because mill activity drives raw fiber demand across global markets.
Farm-Level Takeaway: Tariff-driven sourcing shifts can change where textile demand develops, influencing long-term market opportunities for U.S. cotton.