U.S. apple industry suffers big declines in exports to Southeast Asia

U.S. apple growers have suffered big drops in export sales to Southeast Asia, and retaliatory tariffs imposed by China on U.S. apples in 2018 are the reason why.

Exports to Southeast Asia have dropped 40% in the past three years, according to a news release from the Falls Church, Va.-based U.S. Apple Association. The lost sales are keenly felt now, as Chinese New Year (Feb. 1) celebrations begin, according to the release. The holiday drove big sales to Asia before a series of retaliatory tariffs imposed by China in 2018 took their toll. 

U.S. Apple is calling on the Biden Administration to eliminate Sections 232 and 301 tariffs on Chinese products, according to the release. The group believes China in turn will drop its retaliatory tariffs on U.S. products, including apples.

“There is a long, rich heritage in Southeast Asian countries of gifting apples as a gesture of friendship and good health during Chinese New Year,” Jim Bair, president and CEO, said in the release. “This tradition helped carve a prominent space for U.S. apple exports for those celebrations. Sadly, this year most of those apples won’t be from the U.S.”

Washington, representing about 95% of U.S. apple exports, is at a 22-year low with only 21.3% of its apples being exported this season, according to the release. That compares with the average of 32% of the crop exported before the retaliatory tariffs were put in place. Current Chinese tariffs on U.S. apples are at 50%, according to the release.

“The U.S. apple industry finally achieved full access to the Chinese market in 2015,” Bair said in the release. “Exports quickly grew to 2.5 million boxes per year, making China our sixth-largest export market. Sadly, we lost the momentum and growth potential due to the confluence of excessive tariffs, as well as continued supply chain and shipping issues. We are continuing to urge the administration to find a solution that will ease the tariffs on U.S. apples.”