US trade war with China could cause huge losses for California nut growers

Published Nov 11, 2024

Tridge summary

Economists from the University of California highlight the potential $1 billion annual trade losses for California due to the U.S.-China trade war, with the agricultural sector being particularly vulnerable. The possible revocation of China's Permanent Normal Trade Relations status could lead to higher tariffs and a sharp decline in California's exports to China, which have significantly increased since China's WTO entry. High-value crops like almonds and walnuts have already suffered severe financial setbacks, with some companies facing bankruptcy. The previous U.S. administration's bailout did not cover California farmers, worsening their plight. Continued trade tensions could have enduring adverse effects on American agriculture, especially if U.S.-China relations deteriorate further.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Economists at the University of California say the trade war between the United States and China could result in trade losses of $1 billion annually for the state. University of California researcher and economics professor Colin A. Carter spoke to Portalfruticola.com about the implications this will have on the state's agricultural industry if the United States does not reevaluate its trade relationship with China. The document, "Revoking China's Preferred Trade Status Would be Costly for California Agriculture" begins by addressing talks about revoking China's Permanent Normal Trade Relations (PNTR), a title that currently allows the Asian giant to negotiate with the United States with preferential tariff rates. If it does, China would likely retaliate by raising tariffs on agricultural imports by 9.5%, which would cause a "one-third" decrease in California exports to China. Since China joined the World Trade Organization, California’s dependence on China has quadrupled, from ...

Source: MXfruit