President Donald Trump's announcement of a 10 per cent universal tariff on imports, with elevated rates for key trade partners like the EU, has placed California's agricultural sector in a precarious position. The state, known for its extensive agricultural output, could face retaliatory tariffs, potentially costing billions, as per a University of California, Davis study. This scenario recalls the financial strain experienced during the 2021 drought.
California's agriculture, the largest in the U.S., has actively engaged with Congress and the White House to mitigate tariff impacts while cautiously acknowledging promises on water resources. Western Growers Association Chair Stuart Woolf highlighted the delicate balance in advocating for the industry: "There's some anxiety around presentation. It's a unique thing. How do you thread this needle and not sound like a whiner?"
Almonds, forming 20 per cent of California's $23.6 billion agricultural exports, with major markets in the EU, India, and China, are particularly vulnerable. The California Almond Alliance warned that retaliatory tariffs could harm U.S. profits and benefit competitors like Australia. The alliance has requested a government bailout if necessary.
Farmers recall previous trade wars, when China imposed a 55 per cent tariff on California almonds, leading to significant losses. Relief funds eventually reached growers, though not initially. Current efforts focus on maintaining market stability amid potential new tariffs.
Former Almond Alliance president Aubrey Bettencourt's appointment to lead the USDA's Natural Resource Conservation Service provides a strategic advantage. Meanwhile, growers are concluding sales from last year's crop at favorable prices, yet they anticipate a larger harvest this year, heightening concerns over market conditions.
Source: Politico