Wins and Losses for American Ag in Latest Trade Details
Late last week, China announced an additional 10% tariffs on $75 billion of U.S. goods including apples, pears, and cherries, according to multiple reports which will go into effect on Sept. 1. This is as the U.S. tariffs on Chinese goods is set to kick in on Sept. 1.
This also comes on the heels of a newly released document from USDA’s Office of the Chief Economist, detailing how estimated damage from trade disruptions was calculated for its support package for farmers.
These damages from trade disruptions include $318,000,000 in pistachios, almonds, walnuts, pecans, hazelnuts, and macadamia nuts; $111,000,000 in sweet cherries; and $70,000,000 in grapes.
But, there is some good news, as Japan has recently agreed to a trade deal with the U.S. which will include agriculture products. While the details are still being worked on, Western Growers President and CEO Tom Nassif quickly applauded the deal.
“Tariff equity for U.S. fresh produce is one of our most important international trade priorities, with Japanese tariffs on American agricultural products reaching as high as 35% for some commodities. Of equal importance is the need for sanitary and phytosanitary (SPS) reforms, as Japan’s current SPS regulatory regime prohibits many high-quality U.S. fruits, vegetables, and tree nuts from entering the Japanese market,” Nassif said. “The anticipated reductions in tariffs and SPS barriers will result in true market gains and much needed economic relief for an industry that has already been caught in the crosshairs of trade wars on other fronts.”