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Trade frictions between China and the United States have intensified the import nut markets may change

Pubtime:2018-05-17Author:Source: Hits:

Recently, trade frictions between China and the United States have been increasing, from agricultural products and steel to aircraft, automobiles and chips. From April 2nd, tax increases on fruits and nuts from the United States have been formally implemented. Because American nuts play an important role in the Chinese market, tariff changes will undoubtedly bring some impact to the market. At the same time, it also provides certain opportunities for other countries' nuts and related planting industry in China.

Walnuts imported from the United States occupy a large share of the Chinese market. The former tariff is 25%, plus the added value of 15% and value-added tax. The import tax is up to 50%. Compared with the current zero tariffs on Chilean walnut, although exports to China are small at the moment, the price advantage of Chilean walnut will be more protruding with the increase of American walnut tariffs, which is expected to gain greater market share in China. In addition, the production of Walnut in China is very large, and its quality has improved in recent years. It may replace part of the American walnut market.

In 2017, American pistachio exports to China amounted to US $175 million. The increase in tariffs will undoubtedly bring more opportunities to Iran, the second largest pistachio producing country in the world. In 2017, the average export price of Iran pistachio exports to China was $6437 per ton, and the American was $6334 per ton. 15% additional tariffs will make the pistachio of the United States at a disadvantage in price competition.

In addition, China is the most important overseas sales market of American pecans, occupying 20% of the export volume of pecans.Since last November, China has reduced the tariff ofpecans to 7%.After the increase in tariffs, the US tariff on pecans were 22%, while the tariffs in Mexico and South Africa were still 7%, and Australia's tariff fell to 4.8% this year because of the free trade agreement.For consideration of import costs,Chinese buyers may increase purchases from other sourcing countries.In addition, although the planting area of pecans in China is increasing year by year, the gap between quantity and quality is very large and it is still not enough to fill the gap.The most important influence of tariff increases will cause the price of terminal products to rise.

The American almonds accounts for more than 98% of China's imports.Australia also produces almonds, but the yield is small.Because other countries lack corresponding replacement products, it may have little impact on US exports.In addition, the hazelnut will also face severe challenges. Chinese buyers will consider buying hazelnuts from Turkey to replenish their supply.