Sweet Cherry Tariff Profile

Market Intel / October 4, 2018

Our Market Intel series on commodity-specific tariff profiles continues with sweet cherries.

The U.S. is the third-largest producer as well as the third-largest exporter of cherries in the world. Exporting 18.2 percent of the world’s cherries, the U.S. sold over $602 million in sweet cherries during 2017.  For all free trade agreement partners, like Canada, the U.S. tariff on sweet cherries is 0 percent. For non-FTA partners, such as Chile and Argentina, the U.S. tariff is on sweet cherries is 4.4 cents per kilogram. 

Canada is the largest customer for U.S. sweet cherries, purchasing $137 million worth in 2017. With the North American Free Trade Agreement, U.S. sweet cherry exporters are charged a 0 percent tariff on cherries into Mexico and Canada. Without NAFTA, the U.S. would be subject to a 2 percent tariff on sweet cherries to Canada and a 20 percent tariff on sweet cherries to Mexico.

China imports 40 percent of the world’s cherries and is our third-largest customer for sweet cherries, purchasing $122 million worth of U.S. sweet cherries in 2017. With the largest share of the cherry import market, China charges sweet cherries an average tariff of 10 percent. However, with retaliatory tariffs in place, the current tariff on U.S. cherries is 60 percent, while our competitors are still charged 10 percent.

Our third-largest customer, South Korea, purchased $133 million worth of U.S. sweet cherries in 2017; in total, South Korea currently imports 4 percent of the world's cherries. Due to the U.S.-Korea Free Trade Agreement, U.S. sweet cherries are charged a 0 percent tariff, as opposed to our competitors, which are charged a 24 percent tariff.

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

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

Share This Article

Credit: TheDigitalArtist/ CC0 

In order to provide additional perspective on the farm economy, the American Farm Bureau Federation conducted an informal online survey between Jan. 8 and Feb. 14. Nearly 300 respondents completed the survey with high participation across the Midwest. Nearly 80% of the respondents identified as a farmer or rancher and the primary farming activities represented included crop, cattle and calves, followed by dairy, other livestock and specialty crops.

Full Article
Credit: CC 2.0 by United Soybean Board 

USDA’s recent Agricultural Outlook Forum presented a first look at the supply and demand projections for cotton and grains and oilseeds for the 2020/2021 crop year. The largest annual meeting of USDA, the forum is also the venue for USDA’s chief economist to unveil the department’s projections for U.S. commodity markets and trade. The balance sheet projections from the forum will be updated in the May World Agricultural Supply and Demand Estimates report and will also include acreage information from USDA’s March Prospective Plantings report, which will include surveyed farmers’ 2020 planting intentions.

Full Article