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$650-mn exports of California almond growers hurt due to Indo-US trade tiff

California almond orchards are expected to produce 2.50 billion pounds of nuts this year

Press Trust of India  |  Washington 

Almonds. Photo: Wikimedia commons

A top US Senator has slammed for "damaging" ties with India, saying his actions are hurting almond growers who export more than $650 million worth of nuts to the country every year.

Senator Dianne Feinstein's criticism of the US came days after announced a hike in customs duties on as many as 28 US products, including almond, pulses and walnut, in response to higher tariffs imposed by on Indian products like and aluminium.

"just placed a 75 per cent tariff on almonds in response to Trump's war. His actions are hurting Californians.

"almond exports to are worth more than $650 million a year. The president must stop damaging relations with our allies," Senator Feinstein said.

Almond growers in the US are a worried lot as authorities last month predicted a record California almond crop for the upcoming production year.

According to the Almond alliance of California, its almond export is being badly hit by retaliatory tariffs from both and India.

California almond orchards are expected to produce 2.50 billion pounds of nuts this year, up 8.69 per cent from last year's 2.30 billion-pound crop, it said.

The Indian move is also seen in retaliation to Trump's decision terminating India's designation as a beneficiary developing nation under the key GSP trade programme after determining that it has not assured the US that it will provide "equitable and reasonable access to its markets".

The suspension became effective June 5. India's retaliatory tariffs came into effect Sunday.

and almond are some of the other American agricultural products to be impacted by India's retaliatory tariffs.

The move will hurt American exporters of these 28 items as they will have to pay higher duties, making those items costlier in the Indian market.

Earlier, the list included 29 goods but India has removed artemia, a kind of shrimp, from the list.

The country would get about USD 217 million additional revenue from such imports.

had in March last year imposed 25 per cent tariff on and a 10 per cent import duty on aluminium products. Earlier, there was no duty on these goods.

India's exports to the US in 2017-18 stood at $47.9 billion, while imports were at $26.7 billion. The trade balance is in favour of India.

First Published: Tue, June 18 2019. 11:45 IST