INDIA ITME 2026

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US cotton becomes Vietnam's tariff shield

18 Jul '25
4 min read
US cotton becomes Vietnam's tariff shield
US cotton becomes Vietnam's tariff shield

Insights

  • Vietnamese textile mills have booked record amounts of US cotton in the past few months.
  • West African cotton growers and Chinese brokers face being squeezed out of the Vietnamese market.
  • 'Two-basket' sourcing is now being adopted in response to new levies.
  • Unmatched end-to-end digital audit trails are now crucial for compliance.
  • This shift forces brands to rethink sourcing strategies.

A provisional July *nd agreement is now proposing a ** per cent tariff on most Vietnamese exports to the US, along with a steep ** per cent rate on goods containing Chinese inputs.

With US imports from Vietnam hitting $***.* billion in ****, the stakes remain huge.

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