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US May Offer Apparel Tariff Breaks To Four Countries Using American Cotton

• By  Textile Excellence
• October 31, 2026

Bangladesh, Indonesia, Cambodia and Malaysia could gain preferential access to the US market, provided their apparel makers use US cotton and textile inputs.

The US is dangling a tariff incentive to get more Asian textile and apparel manufacturers buying American cotton. A new programme, being designed by the US Department of Agriculture's Foreign Agricultural Service (FAS), is expected to launch in 2027.

The deal is straightforward: selected countries could receive preferential tariff treatment on apparel imports into the US if their manufacturers use US cotton and textile inputs. The countries in focus are Bangladesh, Indonesia, Cambodia and Malaysia.

The initiative builds on the USDA's Great American Cotton Plan, announced in May. Under separate trade agreements, Indonesia has committed to importing at least 163,000 tonnes of US cotton annually for five years, followed by a minimum of 150,000 tonnes. Bangladesh, meanwhile, has secured a tariff reduction on apparel made using US cotton and textile inputs.

FAS will verify purchases of US cotton by the selected countries to determine eligibility for the proposed tariff benefits.

For Asian manufacturers, this could open up a useful route to more competitive US market access. Companies operating factories in the four selected countries could potentially benefit if they use US cotton and textile inputs.

FAS will verify purchases of US cotton by the selected countries to determine eligibility for the proposed tariff benefits. For Asian manufacturers, this could open up a useful route to more competitive US market access. Companies operating factories in the four selected countries could potentially benefit if they use US cotton and textile inputs.