New Tariffs Could Cost U.S. Nut and Fruit Industries over $3 Billion, According to Report by Professor Sumner and Ph.D. Student Researcher Hanon
Aug. 15, 2018
A new report released by the UC Agriculture and Natural Resources' Agricultural Issues Center (AIC) estimates that tariffs imposed by other countries on U.S. commodities in the ongoing international trade turmoil could cost U.S. fruit and nut industries $2.64 billion per year, and as much as $3.34 billion by reducing prices in alternative markets.
"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 co-author Daniel A Sumner, AIC director and distinguished professor in the Department of Agricultural and Resource Economics (ARE).
When nuts and fruits are diverted back into the remaining markets, Sumner and co-author Tristan M. Hanon, an ARE Ph.D. student researcher, expect farmers to lose revenue from lower prices. Almonds could lose about $1.58 billion and pistachios could lose about $384 million. The authors also look at the impact of tariffs on pecans, walnuts, apples, oranges, raisins, sour cherries, sweet cherries, and table grapes.
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