Who Cares About the Price of Cotton?

Source for domestic pricing: USDA Agricultural Marketing Service (AMS), Source for imported pricing: Cotlook LTD, A Index.

The first interesting thing to note about the price of cotton is that it is trending down, both globally and domestically. Why? Basic economics. Supply and demand. The demand for new textiles has been sluggish worldwide because of slow economic growth and people just not spending as much. That means a surplus of raw materials…hence, prices are lowered.

The next thing to notice is the cost difference between imported and domestic raw cotton. A lot of this is easily explained by the “price” being monitored including freight and shipping. So domestic cotton will always appear cheaper.

But another factor weighing into the mix is that Brazil has overtaken the US as the leading global exporter of cotton. Here’s an excerpt from from southernagtoday.org:

In 2016, U.S. cotton exports captured 39% of the global market, but this share has steadily declined since the onset of trade disputes with China. By 2023, the U.S. share in the global cotton market had fallen to 26%, its lowest point in over a decade. Although it rebounded slightly to 28% in 2024 and 2025, U.S. cotton has faced rising competitive pressures, particularly from Brazil.  Brazil’s ability to double-crop cotton with other crops has driven substantial growth in its cotton production and exports. Consequently, Brazil has rapidly expanded its role in the global cotton market, surpassing U.S. cotton export volumes by 2023 and becoming the world’s leading cotton exporter. This shift is closely tied to China’s strategic diversification away from U.S. cotton, with Chinese investment in Brazilian infrastructure improving logistics, port access, and overall competitiveness.

southernagtoday.org

Once again, it means the US is faced with those stubborn economic principles. Lower demand on the global stage means lower prices.

Now, you may ask, what does all this have to do with me? If the prices of the raw materials are going down, shouldn’t the price of my quilt cotton be going down?

The problem is that very little US cotton stays here to be processed and used as fabric. It is exported to mills in Viet Nam and South Korea (which by the way is where 80-90% of quilt shop fabric is manufactured).

When the fabric is finished, it gets re-imported back into the US and tariffs are imposed. It doesn’t matter that the raw material started in the US.

So, I just want to be clear. We grow the cotton here in the US, we are making less and less on the exported farming sales. When it is imported again, we pay the tariffs and those increasing costs are passed down to the consumer.

To reiterate, the US makes less money selling the cotton, and pays more to use the final product. That is the way the system has been designed. This year.

These are the facts.

I don’t know what that means for each individual consumer. You may need to assess your priorities. Me, I will be using my stash as much as possible and supporting my local shops as much as I can. I also plan to monitor the price of quilt cotton around the country over the next year.

When I became a quilter, we were buying fabric all the time–shop-hopping our way to every place we could find. That’s not how the next generations approach this craft. They are re-purposing, mending, re-using, and scrapping. Things are changing. Supply and demand.

It’s important to understand the dynamics at play here. That doesn’t mean any pricing will self-correct over time. In fact it is likely to get far worse before it gets better.

Tariffs…They’re Baa-aaack.

Let’s start with Switzerland. No one, including Switzerland, has any idea why they are suddenly the objects of an outrageously high tariff — 39%.

As I’ve written previously, this will have a major effect on the cost of high end Bernina sewing machines. In particular, the 990, which is their current top of the line and is manufactured in Switzerland, and also Bernina’s longarm machines, which are also manufactured in Switzerland.

I don’t know how much is possible, but Bernina also has a manufacturing plant in Thailand, and it would be beneficial for them to move all line manufacturing there. Since Thailand is only at about a 19% tariff (at the moment). That’s the thing. These tariff’s are all at the whim of one person, so no manufacturer can plan with any precision or even with any modicum of trust that conditions will be positive for manufacturing any goods.

For now, we can all rest assured that the only guarantee is that consumer prices for consumer sewing machines will rise. Period.

When that will start to take place is anyone’s guess.

I’m certain that prices are rising already in preparation for changes.

I know that when the Bernina 990 was first introduced last year, the manufacturer’s suggested retail price was $22,999.

Today, on Bernina’s website, the manufacturer’s suggested retail price is $23,499. It’s already gone up around $500. And it hasn’t even been around a full year.

Tariffs are not even really being added to pricing. Just for fun, take a look at the executive order which explains the timing of tariffs.

Sec. 2.  Tariff Modifications.  (a)  The Harmonized Tariff Schedule of the United States (HTSUS) shall be modified as provided in Annex II to this order.  These modifications shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 7 days after the date of this order, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time 7 days after the date of this order, and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on October 5, 2025, shall not be subject to such additional duty and shall instead remain subject to the additional ad valorem duties previously imposed in Executive Order 14257, as amended.

So that tells me that anything that gets onto a boat before October 5, 2025, will not have these newest tariffs. I believe Thailand was down at 10% prior to this order. But I’m not a tariff expert, just a consumer trying to keep up.

Now, having worked in retail, I know that most of the holiday season merchandise will be on a boat before October 5.

All of that is simply to say that we will not see the true impact of tariffs — not really — until first quarter 2026. The 2025 holiday season seems already baked in, at whatever shaky pricing guesses merchants could make.

2026 will start to unveil the true cost of these tariffs. And rest assured, that cost will not be borne by manufacturers…or the government…or distributors…or other countries. ( I mean, ask the CEO of Apple, who went to the Whitehouse with gifts and left with exemptions from tariffs.)

We will pay. We, the American consumers will pay for whatever happens in pricing for consumer goods. And food.

Unless of course the tariffs are renegotiated before then.

Why do I suddenly have a taste for TACO’s?