Impact of COVID-19 on Agriculture

Apple Tariff Profile

Market Intel / October 11, 2018

With apple season upon us, our Market Intel series on commodity-specific tariff profiles continues with this fall favorite.

As the third-largest producer of apples in the world, the U.S. exported $969 million worth of apples in 2017. By importing $233 million in the same year, the U.S. maintained a trade surplus of $736 million in apples in 2017. On its apple imports, the U.S. charges a 0 percent tariff for all FTA partners, like Mexico and Canada. For non-FTA partners, the U.S. charges a tariff of 1.1 cents per kilogram.

In 2017, purchasing $18.3 million in U.S. apples, China represents our 11th-largest customer. The tariff on U.S. apples in China is 10 percent. However, with retaliatory tariffs in place, the tariff on U.S. apples has increased to 60 percent. All the while, our competitors are still subject to a 10 percent tariff.

Our North American Free Trade Agreement partners, Mexico and Canada consume the most U.S. apples. Mexico is the largest importer of U.S. apples, purchasing $275 million in 2017. Our second-largest customer, Canada, purchased $167 million worth of U.S. apples in 2017. Due to NAFTA, the U.S. apple exporters are subject to a 0 percent tariff on all apples to both Mexico and Canada. Without NAFTA, the same exporters would be subject to a 20 percent tariff in Mexico, and a 4.3 percent tariff in Canada.

Importing 4.1 percent of the world’s apples, India is the third-largest customer for U.S. apples. In 2017, India purchased $97 million worth of U.S. apples. The tariff India charges on fresh apples is 50 percent, however as of September 18, 2018, the tariff on U.S. apples increased to 75 percent, in retaliation for U.S. steel and aluminum tariffs. India’s average most favored nation tariff rate for agricultural products is 32.7 percent.

To read more in the series, check out our deep-dive into soybean, wheat, corn, pork, cotton, beef, shelled almond and sweet cherry tariffs.

Contact:
Megan Nelson
Economic Analyst
(202) 406-3629
megann@fb.org
twitter.com/@MeganRNelson1
 

Share This Article

Credit: Getty Images 

USDA’s import and export trade data for June 2020, released Wednesday, provides important insight into the impact of the COVID-19 outbreak on U.S. farm products. While the first stay-at-home orders didn’t begin until mid-March, concerns about the virus began several weeks before, impacting businesses and consumer purchasing behavior nearly the entire month of March. Now with four months of data available, the effect on international agricultural trade is coming into focus.

Full Article
Credit: iStockPhoto 

Currently, most dairy farmers who are members of cooperatives do not have the opportunity to cast individual and confidential ballots when it comes to voting on changes to FMMO milk pricing rules, which could be regional or national in scope and likely impact all members of the dairy industry, from the processor down to the farmer.

Full Article