KGUN 9NewsLocal News

Actions

U.S.- China trade war may affect Southern Arizona pecan industry

Posted at 2:23 PM, Jul 09, 2018
and last updated 2018-07-10 01:23:29-04

A trade war between the United States and China could have a big impact on Southern Arizona's pecan industry.

Arizona produced a record 28 million pounds of pecans in 2017, according to data from USDA

Green Valley Pecan Company in Sahaurita is one of the largest pecan producers in the world. 

RELATED: First round of tariffs on China take effect today, and Trump has threatened more

On Friday, China accused the United States of starting the "biggest trade war in economic history" as US tariffs took effect on Chinese goods worth $34 billion. 

Green Valley spoke with KGUN back in April about how the possibility of the tariffs could hurt business. Tariffs were at 7 percent in January 2016, then spiked 22 percent a couple of months ago. 

Friday's increase took tariffs on pecans to 47 percent. 

The tariffs could drop prices of pecans at stores, which is good for consumers, but bad for the industry as a whole if they're being sold for less than the cost of growing.

The tariffs bring a lot of uncertainty to Green Valley Pecan Company, according to executive Vice President, Bruce Caris. But he says the company has been through rough patches before.

It could be several months until the effects of the tariffs could be felt - from the production level to the retail level.

RELATED: Green Valley pecans featured in Epcot International Festival of the Holidays

RELATED: How pecans go from the trees to your table