On December 29, 2025, the General Administration of Customs officially announced that the State Council's Tariff Commission issued the “2026 Tariff Adjustment Plan” (hereinafter referred to as the “Plan”), specifying a series of tariff adjustment measures to take effect from January 1, 2026.

Among these, the sliding-scale tariff policy for cotton imports—closely watched by the textile industry—remains unchanged. A certain quantity of cotton imported beyond the quota will continue to be subject to a provisional import tariff rate under the sliding-scale tariff system. This policy continuation has drawn widespread industry attention. Against the backdrop of profound adjustments in the global textile supply chain and continuous upgrading of domestic market demand, what opportunities and challenges will the 2026 tariff adjustments bring to the textile industry?

Multiple Policies Extended, Focusing on Industrial Development Needs

Centered on three core objectives—“guiding the development of new productive forces, expanding high-level opening-up, and meeting the people's aspirations for a better life”—this tariff adjustment encompasses six major categories of changes, including provisional import rates, tariff quota rates, and export duty rates. Several policies are closely tied to the textile sector.

Regarding import tariffs, the plan imposes provisional import rates on 935 items, covering multiple supporting products in the textile supply chain, which is expected to reduce import costs for relevant enterprises. Tariff quota management policies remain stable, continuing to apply quota management to eight categories of goods including wheat, with rates unchanged. Notably, the provisional import tariff rate of 1% remains in effect for three types of fertilizers: urea, compound fertilizer, and ammonium hydrogen phosphate. This will indirectly reduce costs in the upstream agricultural production segment of the textile industry, providing stable support for raw material production such as cotton.

Regarding export duties, the Plan maintains levies on 107 items including ferrochrome, with 68 items subject to provisional export rates. Certain chemical raw materials and metal accessories relevant to textiles are included in this management scope. This adjustment will help guide the industry toward optimizing its export structure, promoting exports of high-value-added products, and advancing industrial transformation and upgrading.

Adjustments to preferential and preferential tariff rates open new opportunities for the textile industry to expand into international markets. Under 24 free trade agreements and preferential trade arrangements signed between China and 34 trading partners, import tariffs on certain goods originating from New Zealand, Peru, South Korea, Australia, and RCEP member countries will be further reduced. Existing preferential tariff rates with ASEAN, Chile, Singapore, and other partners remain in effect. Simultaneously, 100% tariff lines from 43 least developed countries will continue to enjoy zero-tariff treatment, while certain imports from ASEAN member states like Bangladesh and Laos will maintain preferential tariff rates. This series of policies will help textile enterprises better leverage the benefits of regional trade agreements, reduce import-export costs, and enhance international competitiveness.

Fortifying Raw Material Security for the Textile Industry

As the core raw material for the textile industry, cotton import tariff policies have always been a focal point of industry attention. The Plan explicitly states that a certain quantity of cotton imported outside the quota will continue to be subject to a provisional import tariff in the form of a sliding scale tariff. The continuity of this policy provides stable policy expectations for the textile industry.

A sliding scale tariff is a tax policy that adjusts the tariff rate based on the price of imported goods. When the price of imported cotton is high, a lower tariff rate applies; and higher rates when prices are low. This mechanism effectively mitigates the impact of international cotton price fluctuations on the domestic market, ensuring stable raw material supply for domestic textile enterprises while preventing low-priced cotton imports from undermining the domestic cotton industry. It strikes a balance between import regulation and industrial protection.

In recent years, the global cotton market has experienced significant price volatility due to multiple factors including extreme weather, geopolitical tensions, and supply chain disruptions. Since 2024, international cotton prices have undergone multiple rounds of volatility, creating significant uncertainty for domestic textile enterprises in raw material procurement. The continuation of this sliding-scale tariff policy for cotton imports will help stabilize domestic cotton market prices, reduce fluctuations in enterprises' raw material procurement costs, and provide a stable policy environment for textile enterprises' production and operational planning.

For small and medium-sized textile enterprises, stable cotton tariff policies are particularly crucial. These enterprises typically have weaker financial strength and insufficient risk-bearing capacity, making them vulnerable to severe impacts from significant raw material price fluctuations. The continuation of the sliding-scale tariff policy will help these enterprises better control costs, stabilize production rhythms, and enhance market competitiveness. Simultaneously, a stable raw material supply environment will also encourage enterprises to increase R&D investment, improve product quality and added value, and drive the industry toward high-quality develop

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