Posturing about a possible trade war between the United States and China could have a big impact on a Southern Arizona Company.
China is threatening to place a fifteen percent tariff on products like pecans.
The Green Valley Pecan Company in Sahuarita is one of the largest pecan producers in the world.
It sends between three and four percent of its annual crop to China.
The addition of a fifteen percent tariff would be bad for business.
"Potentially it is, we'll see how it plays out," said Chief Operating Officer Bruce Caris. "Twenty-five to thirty-five percent of the pecans grown in the U.S. make their way to China every year."
"With that 15 percent tariff, what you're going to see is your taking away 15 percent of the dollars. The importers have less pecans to buy. So less dollars, less pecans to buy."
That could be good for the consumer in the short-term, but not the pecan industry in the long-term.
"What the pecan industry is trying to do is level out the pricing of pecans," Caris explained.
RELATED
- How pecans go from the trees to your table
- Green Valley pecans featured in Epcot International Festival of the Holidays
Green Valley Pecan Company grows twelve to fifteen million pounds of in-shell pecans in Sahuarita. There is concern about an increased tariff from China. But there's also some hope that perhaps China and the U.S. will be able to negotiate to avoid new tariffs.
"If that works out long term that could be good, Caris said. "Short term for agriculture it could be challenging."
Caris tells KGUN they already face a thirty-seven percent tariff when selling to India. He hopes the newly formed American Pecan Federation can bring a strong lobbying voice to Washington.
----
Pat Parris is an anchor and reporter for KGUN 9 On Your Side. Learn more about him and his work on Facebook and Twitter. Email comments to pat.parris@kgun9.com.
