The Washington and Beijing Agreement saves the American pistachio crop from collapse economy

Pistachio farmers in California breathed a sigh of relief this week after the announcement of an initial agreement between the United States and China to reduce mutual customs duties, ending a stage of tensions that almost ravaged one of the most important American agricultural crops directed to export.

According to the newspaper “Wall Street Journal” on Monday, Beijing agreed to reduce the reprisals imposed on American pistachio imports from 125% to 10%, which farmers described as “excellent news in a time -controlled time.”

China .. an indispensable customer

Federal data indicates that the value of American pistachio exports to China increased amazingly from $ 42 million in 2017 to 842 million dollars in 2024, equivalent to almost a third of the total US crop of $ 3 billion.

The American pistachios in China are famous for the “happy nuts” because of the indication of health and positive energy, which makes it a highly required commodity with the Chinese consumer.

“Life would have been better with less uncertainty, but there is no doubt that farmers feel better after the last agreement,” said Stewart Wolf, Chairman of Wolf Varming Company in California Province, California.

However, there are still fears that the reduced fees, albeit less severe, may continue to press prices before the next harvest season.

An increased production and volatile markets

The United States – specifically the Central Valley region, California – is the first product of pistachios in the world, and the production volume reached its peak in 2023 at 680 million kilograms, with expectations of achieving similar levels this year.

But the surplus production has put on high prices on prices, at a time when farmers are looking for alternative markets amid an escalation of tension with China.

“When the door of the Chinese market is closed, the real questions begin: Where do we go with all this production?”

In this context, Bolly added that the last agreement “may be the beginning of the conversion of the Chinese market relationship from being a temporary circumstance into a permanent pillar in agricultural trade relations.”

Conditional confidence in the Trump administration

Although California is a liberal political stronghold, President Donald Trump has strong support among farmers in the state’s agricultural center, especially after his support for them in their conflict over the distribution of water between the federal authorities and the state government.

With the escalation of risks, some parties in the American pistachio sector began to search for alternative markets.
Zakri Fraser, president of the American Bestachio Greuers Association, said this week in Europe to offer the American crop to new buyers, and wrote in a text message from Frankfurt:

First trade war lessons

During the first term of Trump, the US share of almond and nuts fell to China from 94% to 53%, after Beijing resorted to Australia as an alternative supplier, which led to a significant decrease in prices, from which the market only recovered, according to Collin Carter, professor of agricultural economy at the University of California -Davis.

However, pistachios remain a rare success stories in American agriculture, as it has become the third largest agricultural export commodity after almonds and dairy products in California, and the sector relies on it to compensate for any losses in other crops.