Ag leaders keep close eye on tariff tiff
Impacts already being felt by walnut farmers
With tensions rising over an all-out trade war with China, California agricultural industries are watching the Trump administration’s movements closely. Some say tariffs were needed to bring countries like China to the negotiation table, while others hope the back-andforth can be resolved quickly.
In recent days, President Donald Trump said the United States would impose additional tariffs on $50 billion of Chinese goods, prompting China to up its tariffs on American exports. It’s been a back-and-forth that threatens industries across many different sectors, including agriculture. Trump in return, threatened even greater tariffs.
“We’re already seeing some serious impacts on exported American agriculture products – certainly in China where tariffs were already imposed and will continue to be ramped up,” said Congressman John Gara-
mendi (D-fairfield, Davis, Yuba City). “It looks like it’s going to continue. The president keeps piling on with more and more tariffs, the result of which will be spread way beyond agriculture to most other economic sectors.”
For California walnut farmers, the effects of a trade war are already being felt. China already had tariffs on the books for walnut imports when officials tagged on an additional 15 percent in April, bringing the current total to 35 percent for shelled walnuts and 40 percent for in-shell walnuts. There are talks that those tariffs could increase even more in the future.
“I think we are all a little concerned over the escalating dialogue. When you talk about the long game for us as an industry, we are hoping for long-term tariff reduction,” said Michelle Connelly, CEO of the California Walnut Commission. “We are optimistic for a favorable outcome but it’s been a bumpy ride.”
Last year, 105 million pounds of walnuts were exported to China – a $137 million market for walnuts, Connelly said. It was the third-largest export market for the commodity.
Other countries that have increased tariffs on walnuts recently include India and Turkey, said Donald Norene, chairman of the Walnut Bargaining Association.
“From what I’ve seen and heard, there isn’t a lot of panic selling going on. There is some but not enough for me to be able to quantify. But the industry has pretty well positioned itself to be sold out of the 2017 crop by the start of the new crop,” Norene said.
The good news for walnut farmers, Connelly said, is this time of the year is not the significant shipping season for the commodity as it’s toward the end of the crop year. The bigger concern will be whether or not trade tensions will be resolved over the next several months once the industry begins planning for what to do with the 2018 crop.
Prunes are another commodity that faces high tariffs on exports into China. After the most recent back-andforth, China has threatened to add another 15 percent on top of the existing 25 percent tariff. If that were to happen, the industry would be impacted significantly, said Donn Zea, executive director for the California Dried Plum Board.
Zea said the industry has been able to do fairly well in China. American prunes make up just less than 80 percent of the market share in the country – one of the reasons industry leaders don’t want to see that market go away, Zea said.
Other countries that could pose problems for the prune industry if tensions continue to escalate include Japan – the largest market for prunes – and Europe.
“We are supportive of the Trump Administration of trying to get better deals. Sometimes that comes with pain, so we are hanging in as long as we can,” Zea said. “Trump is absolutely right, this is a huge issue with agriculture, it’s just rough going getting there.”
The California rice industry hasn’t reported any significant effects of the escalating trade war talks, but experts are paying close attention.
“We will continue to monitor developments with great interest. There has currently been no impact, although we are disappointed to hear that the (European Union) has announced it will impose an additional 25 percent duty on our rice,” said Jim Morris, communications manager for the California Rice Commission. “We are hoping that all sides can come together soon and find a resolution.”
FELONY ARRESTS
Jimmie L. Cooper, 20, homeless was arrested by the Yuba City Police Department at 12:30 a.m. June 21 at the intersection of Lincoln Road and Jones Road on suspicion corporal injury to a spouse or cohabitant. He was booked into Sutter County Jail.
Daniel L. Leal, 57, of the 300 block of Township Road, Yuba City, was arrested by the Sutter County Sheriff’s Office at 12 p.m. June 20 at the intersection of North Township Road and Butte House Road on suspicion of carrying a dirk or dagger. He was booked into Sutter County Jail.
Earl N. Plouffe, 39, of the 5800 block of Lindhurst Avenue, Olivehurst, was arrested by the Marysville Police Department at 10:55 a.m. June 20 in the 800 block of Ninth Street on suspicion of criminal threats. He was booked into Yuba County Jail.
Amy N. Stalions, 37, of the 1100 block of Larry Way, Yuba City, was arrested by the Yuba City Police Department at 1:30 a.m. June 20 at the intersection of Bridge Street and Palora Avenue on suspicion of driving a car without consent. She was booked into Sutter County Jail.
Robert M. Gray, 29, homeless, Olivehurst, was arrested by the California Highway Patrol at 1:05 a.m. June 20 at 11th Avenue on suspicion of being a felon in possession of ammunition. He was booked into Yuba County Jail.
DUI ARRESTS
Rodolfo Granados-hernandez, 31, of the 2000 block of Fir Street, Live Oak, was arrested by the Yuba City Police Department at 10:55 a.m. June 20 on Bridge Street. He was booked into Sutter County Jail.
John W. Williford, 55, of the 700 block of Shasta Street, Yuba City, was arrested by the Yuba City Police Department at 2:45 a.m. June 20 on Sunsweet Boulevard. He was booked into Sutter County Jail.
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