Trade relations between the US, the world’s largest cotton exporter and China, the world’s largest cotton consumer are tense. China has announced a 25 per cent tariff on uncombed US cotton that is scheduled to go into effect on July 6, 2018. The uncertain trade policies along with tight markets create uncertainty in the short-term in global cotton markets. Cotton demand is up, especially in Asia and South Asia, but drought conditions in the West Texas region of the US and the potential of new tariffs on cotton are serious concerns and one of the reasons that prices have dropped from a season-high of 102 cents per pound, according to the July 2018 edition of Cotton This Month, released by the International Cotton Advisory Committee (ICAC).