American pistachios see another rise in China tariffs, but avoid them in other parts of the world.

On July 6, the Peoples Republic of China implemented a new round of tariffs on products imported from the United States, including an increase in tariffs on American pistachios.[1] Earlier this year, American pistachios saw tariff rates rise from 5% to 20%.[2] This second round of tariffs increases the amount by 25% for a total of 45% on raw in-shell and shelled pistachios.[3] Roasted pistachios in sealed containers and in bulk saw their tariff rate decrease from 13% to 5% and 10% to 5%, respectively.[4]

As the United States continues to reform its trade policies, many countries are retaliating with tariffs on American products. The EU[5], Canada, and Mexico[6] have already announced retaliatory tariffs. Seemingly unrelated to U.S. actions, India announced an increase in tariffs on other tree nuts entering the country.[7] Fortunately, pistachios were not included in the product lists released by those countries.

This past week, APG Director of Government Relations Rob Nash participated in a roundtable discussion on international trade with Congressman Jim Costa and other members of the agriculture industry. APG continues to monitor the trade situation and engage with federal officials and agriculture coalitions across the country to help achieve an agreeable solution for the American pistachio industry.

Sources:

[1] GAIN Report, 6/21/18, “China Responds to U.S. 301 Announcement with Revised Product List,” pp. 1-6, 18. (“GR1”) [2] GAIN Report, 3/23/18, “China Targets U.S. Agriculture in Response to U.S. Trade Actions,” pp. 1-4, 5. (“GR2”) [3] GR1. [4] GAIN Report, 6/4/18, “China to Cut Tariffs on Agricultural Products,” pp. 1-4, 24. (“GR3”) [5] GAIN Report, 6/21/18, “EU Imposes Additional Tariffs on U.S. Products.” (“GR4”) [6] GAIN Report, 6/6/18, “Mexico Announces Retaliatory Tariffs.” (“GR 5”) [7] GAIN Report, 6/7/18, “Government of India Increases Tariff on Certain Agricultural Imports.” (“GR 6“)