A NOTE FROM THE STAFF
On Tuesday April 3, 2018 we ran the “Pecan Tariffs and the China US Trade War” article, after speaking with several of our Chinese contractors we agreed that pecans were not specifically covered under the new tax code in China. We published the story at 10:15 am and by 10:21 am we received emails and phone calls from brokers, in 4 different countries, 2 government employees, and multiple other growers and pecan industry organization leaders, informing us that our information may be incorrect. They were right. By 10:28 am we had the corrections made to the article. I bring this to attention, not to show our mistake, but to show how valuable and efficient this industry is because of the community working together to publish accurate and timely pecan data for the global pecan industry.
THANK YOU! to all of our friends, as well as to all of the daily contributors who make this publication possible. We are grateful, and we are proud to serve you.
Sunday night US Pecans along with all other tree nuts originating in the US received news that China would be adding a 15% tariff to the current tariff rate.
What does this new tariff mean for the US Pecan industry, and what does it mean for the global pecan industry. Most immediately it means that US Pecans imported into China will now be taxed at 22%. We can also assume that pecans of non-US origin are now slightly more valuable. But that might not be completely accurate. We are still in a supply shortage for the demand that currently exist for pecans. US Pecan shellers are currently running low on inventory and are actively buying in the market. Western pecan growers holding pecans say that buying activity slowed a little during the last month but is now seeing increased interest. Then there is the black market. A large portion of the pecans entering China, enter via the black market where they are smuggled into China without being taxed as heavily. Even though the tariff had been reduced down to 7%, most buyers already had these black-market channels set up and still found it more profitable to continue to utilize this import method. The risk of course, are higher when importing this way and many buyers would rather not utilize this method, but many still operate this way due to the cost savings. The tariff increase is definitely a blow to the American pecan industry, but because the tariff increases were applied to the entire American tree nut industry, pecans are still competitive when compared to other tree nuts.