Some unexpected, secondary impacts of the chaotic trade relationship between the U.S. and China are appearing in the international table grape market. Increased tariffs placed on American agricultural goods, combined with a significant harvest of table grapes have left the U.S. with a substantial amount still left in the domestic market.
That has caused an issue for Chile, who traditionally provides the U.S. with fresh fruit beginning in December. With California being responsible for most of the domestic production of table grapes and having a sizable harvest that is currently meeting nearly all U.S. demand, Chile is looking for other export destinations. Ronald Bown, Chairman of the Chile Fruit Exporters Association told Bloombergthat they are addressing the situation by seeking alternative markets, particularly in Southeast Asia.
Compounding issues for Chile, the world’s leading exporter of table grapes, is India’s response to American tariff increases. India has raised tariffs on all incoming walnuts to 100 percent, in which Chile is one of the top three exporters.