Tariffs affect U.S. orange exports

Competing citrus growers in South Africa, Egypt and Australia have an advantage in shipping fresh oranges to China, according to an American Farm Bureau Federation analysis.

China charges those countries an 11 percent tariff on orange imports, which had been the same levied on U.S. oranges. But retaliatory tariffs imposed earlier this year raised the tariff on U.S. oranges to 51 percent. China was the fifth-largest foreign customer for U.S. oranges in 2017, at $48 million.

South Korea has been the top foreign market for U.S. oranges, AFBF said, purchasing $226 million worth of fruit last year. South Korea charges a 50 percent tariff on all imported oranges, but due to the Korea-U.S. Free Trade Agreement, the applied tariff on U.S. fresh oranges drops to 0 on a limited quantity. The rest pay the 50 percent tariff.

Canada ranks No. 2 in purchases of U.S. fresh oranges, at $130 million last year. The other partner in the North American Free Trade Agreement, Mexico, ranks 11th.

Under NAFTA, fresh oranges sent to Canada or Mexico move tariff-free. Without the agreement, orange exports to Mexico would be subject to a 20 percent tariff.

Altogether, AFBF said, the U.S. exported $645 million in fresh oranges last year, while importing $163 million.

The U.S. charges no tariff on orange imports from partners in free-trade agreements; for other imports, the U.S. charges a tariff of 2.2 cents per kilogram.