Almonds are California’s top export, generating billions of dollars from U.S. trade partners.
CALIFORNIA, USA — California farms are being thrust into a pricing battle as the United States has imposed tariffs on Canada, Mexico and China, all of which promised to implement retaliatory tariffs.
On Tuesday, Trump implemented a 25% tariff on both Canada and Mexico – two of America’s top trading partners, leading to fears of rising prices. Products imported from China were also hit with an additional 10% tariff, increasing to 20% total.
Trump announced the tariffs against Canada and Mexico in response to what he says is a failure by both countries to combat drugs being brought into the U.S.
Almost all goods imported by Canada and Mexico will be taxed at 25%, with a notable exception for energy imports from Canada, which will be taxed at 10%.
As the Associated Press reported, after Trump instituted the tariffs, China responded with a 15% tariff on various U.S. farm product exports.
California exports billions of dollars of agricultural products to Canada, Mexico and China.
As for what the tariffs will mean for California businesses, the California Chamber of Commerce has come out in strong opposition against the budding trade war.
“The California Chamber of Commerce is committed to supporting a free trade agenda that fosters economic growth and job creation,” said CalChamber President and CEO Jennifer Barrera in a statement. “We strongly oppose protectionist measures, including tariffs, which disrupt global supply chains, raise consumer prices, and hinder the competitiveness of California businesses. A focus on trade agreements instead will ultimately lower both tariff and non-tariff barriers and help create long-term, sustainable economic growth.”
California is the sole producer of almonds in the United States, exporting over $4.6 billion worth of them in 2022. According to the United States Department of Agriculture, two-thirds of California’s almonds are exported and the tree nut is the top agricultural export from California.
Rick Kushman, a spokesperson for the Almond Board of California, told ABC10 that while Canada doesn’t tariff tree nuts, an economic impact on those imported to China will be felt.
“In China, a retaliatory duty of 10% was added to tree nuts including almond kernels and inshell, bringing the total duty to 35%. While China continues to be an important market, California almonds are shipped to more than 100 destinations; therefore maintaining a diverse export program is essential,” he said.
Kushman also said the organization is closely monitoring Mexico’s tariffs, which are expected to be released Friday.
“Our industry continues to support reducing barriers to trade, and smooth market access for California almonds,” he said.
An immediate impact of the trade war between the countries was felt in the stock market.
“The stock market looks at tariffs as bad news for consumers because consumers are less likely to pay those higher prices when a tariff gets applied on goods,” financial expert Maureen Paley told ABC10.
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