As the current trade war expands beyond China — India, Mexico and Turkey also have placed tariffs on U.S. fruits and nuts — the cumulative effect could cost the U.S. fruit and nut industries $2.64 billion per year directly, and an additional $700 million by reducing prices in alternative markets, says a study by the Agricultural Issues Center at the University of California.
“One way to mitigate the impact of the tariff impacts would be to offer assistance to shift the products to completely new markets where these displaced commodities could be delivered without causing price declines,” said economist Dan Sumner, director of the issues center and a co-author of the study. For their work, Sumner and co-author Tristan Hannon, of the University of California, Davis, looked at the impact of the tariffs on 10 perennial fruit and nut crops—almonds, pecans, pistachios, walnuts, apples, oranges, raisins, sour cherries, sweet cherries and table grapes.
The United States exports 13 percent of its almonds, 14 percent of its pistachios and 22 percent of its pecans to countries imposing the tariffs. China spends around $500 million a year to buy 40 percent of U.S. almond exports and $600 million to buy most of the pistachio exports. India usually buys half of U.S. almond exports and Mexico buys $250 million a year in U.S. apples. Turkey put tariffs on U.S. almonds, pecans, pistachios and walnuts.
To read the report, click here.