Being America's second-leading importer of fresh apples, India might have dealt a major blow to the US industry by imposing tariffs on the fruit.
Jim Bair, the president and CEO of the US Apple Association: "India was exploding as a market for imported apples. Then, when the tariffs went into effect, it fell off the cliff."
India announced June 15 it would impose a 20 percent tariff on US apples -- along with 27 other products including almonds, walnuts and lentils. The move came in retaliation for the Trump administration revoking India's preferential trade privileges. But India had been threatening to impose the tariffs since August, when the United States began taxing imports of steel and aluminum from that nation. India had delayed implementing the retaliatory tariffs several times as negotiations continued.
The tariff mainly impacts growers in Washington state, which produces the vast majority of America's apples. Around a quarter of US apples are exported each year -- and 95 percent of those are grown in Washington.
"So, any trade disruptions really target the Washington apple industry," said Toni Lynn Adams, a spokeswoman for the Washington Apple Commission, which promotes and markets the state's apples internationally.
India had just surpassed Canada as nr. 2 apple destination
Mexico is the top importer for US apples. Canada usually claims the second spot, but last year India surpassed Canada for the first time, importing some 320 million pounds compared to Canada's roughly 280 million pounds. That trend ended abruptly after India announced its intention to impose the retaliatory tariff, Adams said.
After that, India's imports dropped substantially, and did not recover. So far this year, India has imported 60 percent fewer American apples, Adams said. If the trend continues, apple prices will fall.
No resolution
US Secretary of State Michael R Pompeo’s talks with his Indian counterpart S Jaishankar on Wednesday did break the ice between the two nations, but did not resolve India’s trade dispute with its largest trading partner.
