California's almond industry is navigating ongoing trade tensions and retaliatory tariffs, with China imposing an additional 10% tariff on U.S. tree nuts, raising the total tariff on American almonds to 35%. The tariffs stem from previous rounds during President Donald Trump's administration.
California accounts for approximately 80% of global almond production, with over three-quarters of its yield allocated for export. The Almond Board of California highlights that almonds are shipped to over 100 destinations, including Canada, China, Mexico, the European Union, and India. However, increased tariffs complicate exports, particularly to China, where competitors like Australia are advancing.
A study by UC Davis and North Dakota State University estimated that tariffs cost the California almond industry $875 million from 2018 to 2022. Growers are working to reduce further losses by diversifying markets and strengthening relationships with other international buyers.
In San Joaquin County, almonds ranked as the third most valuable agricultural commodity in 2023, valued at $343.6 million, following milk and grapes. In Stanislaus County, almonds were valued at over $813 million, with India, Spain, Germany, and Italy as top export destinations.
Rick Kushman, spokesperson for the Almond Board of California, stated, "Maintaining a broad export reach is essential. We continue to support reducing barriers to trade and smooth market access for California almonds."
Trade policies add to the uncertainty faced by growers, who also deal with variable weather and water supply. Dexter Long, vice president of Hilltop Ranch in Ballico, remarked on the industry's preparedness for a second wave of tariffs but noted concerns about price reductions and reduced consumption. "We definitely felt the impacts last time, so it's something that I'll be keeping a close watch on," Long said.
Some growers have noticed market shifts. Zachary Williams, sales director for Stewart & Jasper Orchards, reported increased interest from Canadian buyers amid potential tariff changes. Meanwhile, Stanislaus County Supervisor and almond grower Vito Chiesa expressed concern over uncertainty but acknowledged unpredictability as part of farming. "Until they apply the tariffs, it's just in the ether for me," he said.
Rep. Adam Gray (D-Merced) and Rep. Tom McClintock (R-Elk Grove) have commented on the situation. Gray warned of economic harm to farmers affected by past trade disputes, while McClintock criticized tariffs but recognized them as a bargaining tool.
California's almond exports generated $4.7 billion in 2022, supporting an estimated 110,000 jobs statewide. As tariff pressures persist, the industry focuses on maintaining market access and adapting to global trade conditions.
Source: Stocktonia
Source: The Ceres Courier