China Proposes 15% Tariff on Fresh Fruit, Wine

The New York Times reports China has proposed countermeasures to a proposed $60 billion in tariffs from the U.S. on Chinese-made products.

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The Chinese Ministry of Commerce issued the threat in an online statement. American goods including nuts, wine, and fresh fruit would be subject to 15% tariffs.

The Times reports these proposed tariffs in total will impact just about 2% of all U.S. exports to China, which amount to $130 billion.

“It’s not devastating economically by any stretch, but it’s certainly going to hurt those interests in the United States that are trying to export,” Chad Bown, a senior fellow at the Peterson Institute for International Economics, told the Times. He pointed out that the retaliation by China sends “a negative signal that they are not seeking to de-escalate things.

 

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Reaction from Industry Members:

Almond Board of California President and CEO, Richard Waycott says market access is critical the California almond industry:

  • “Almond Board of California is monitoring for developments on the proposed China tariffs. We hope this issue may be resolved swiftly as the California almond community currently produces our state’s top agricultural export. As one of only five Mediterranean climate zones globally that can productively grow almonds, about 70% of California Almonds are exported and specifically 151 million pounds traveled to China in the crop year 2016-17.
  • “Unimpeded market access is critical for both farmers and customers, and helps to sustain the economicwell-beingg of our communities and ensures heart-healthy California almonds can continue to be enjoyed by more than 90 countries worldwide.”

U.S. Apple Association (USApple) President and CEO Jim Bair says the association (USApple) is extremely disappointed that apple growers have been caught in the crosshairs of what seems will be a trade war between the White House and the Chinese government.

  • “With apples being included on China’s list of retaliatory tariffs, U.S. growers face losing an important and expanding export market, to which access was a hard-fought battle.
  • “The U.S. apple industry worked very hard over the years, and in 2015 finally achieved full access to the Chinese market, just as China has access to our market. We are competing, and winning, with our exports to China growing nicely from zero to about 2.5 million boxes per year. China’s retaliatory response to U.S. tariffs are just the latest chapter in a long and sad story where U.S. apple growers get hurt in a fight we didn’t start and in which we have no interest.
  • “Within three years, China has become our tenth largest market and has tremendous promise for continued growth. Even the U.S. Trade Representative’s Office lists U.S. apple exports to China as one of the country’s top export success stories. Because China doesn’t grow a diverse variety of apples, there is a high demand by its consumers for the many unique varieties offered by the U.S.
  • “Trade is extremely important to the U.S. apple industry. We urge the administration and China to quickly resolve the trade dispute so that our apple exports won’t be disrupted.”

California Association of Winegrape Growers (CAWG) President John Aguirre also speaks out about the proposed tariff on wine:

  • “President Trump’s decision to address United States trade issues by use of threats and increased tariffs risks
    undoing decades of work and investment to grow California wine exports. Last year, California wine exports
    totaled $1.28 billion, with China and Hong Kong accounting for nearly $145 million of that total.
  • “I urge President Trump to return our nation to a strategy of opening markets and resolving trade concerns
    through multilateral negotiations, like the Trans-Pacific Partnership. The current path of tariffs and trade wars is
    sure to result in tremendous harm to California agriculture and future wine exports.”

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Avatar for Greg Johnson Greg Johnson says:

Sell Local. We have a country of growers that harp on the public to “buy Local” all the while they do everything they can to export their products. Instead of exporting our produce/meats and bringing in Chinese produce and honey, Canadian beef of inferior quality, Brazillian asparagus, Mexican apples and produce, etc., let’s focus on selling locally and the public benefits with better quality food.

Want us to buy locally, then Sell Locally.

Avatar for Southern Tier Farmer Southern Tier Farmer says:

I seem to remember the apple industry went after China through the courts on China shipping apple juice concentrate. The industry kind of won when a court agreed with them and slapped a…TARIFF on all apple juice concentrate from China. I say kind of because China got around it by shipping it to a country in Africa which relabeled the containers and shipped it to us with no tariff. I’m just glad we finally have someone in office with knowledge of business and how to negotiate. Oh, no one gets unrestricted anything when it comes to trade. That is ridiculous.

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