China hits US pecans with 54% levies before Xi-Trump summit
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The Commerce Ministry said on Aug 10 that pecans from the US and Mexico were being sold in China at unfairly low prices, citing the provisional result of an investigation.
PHOTO ILLUSTRATION: PIXABAY
- China imposed a 54.3% anti-dumping deposit on US pecans and varying rates on Mexican pecans, citing unfairly low prices and escalating trade tensions before the Xi-Trump summit.
- US pecan imports to China have sharply declined since 2024, with China increasing purchases from South Africa instead, reducing the impact of the new tariffs on trade volumes.
- Mexico expressed concern over the tariffs and vowed to defend its producers, while China emphasised restraint in trade measures and pledged to protect stakeholders before finalising the ruling.
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BEIJING – China ordered steep anti-dumping deposits on pecan imports from the United States and Mexico, adding another source of trade friction weeks before an expected summit between US President Donald Trump and Chinese leader Xi Jinping.
The Commerce Ministry said on Aug 10 that pecans from both countries were being sold in China at unfairly low prices, citing provisional results of an investigation.
Starting Aug 11, importers of US pecans are required to pay a deposit rate of 54.3 per cent, while those buying from Mexico face rates ranging from 17.8 per cent to 51.6 per cent.
The decision comes as Washington and Beijing seek to keep preparations on track for Xi’s planned visit to the US in September, even as a renewed exchange of trade and technology restrictions strains their fragile truce.
China last week announced a barrage of countermeasures, including sanctions on US entities and tighter controls on drone-related exports.
While the increase is drastic, the new charges are unlikely to have a major impact on bilateral trade, given that China’s imports of US pecans had already plummeted after 2024.
Shipments of the nuts amounted to just US$6.9 million (S$8.83 million) in the first four months of 2026, compared with US$77.2 million two years ago.
Instead, China has boosted its purchases from South Africa in recent years, Chinese customs data shows.
China has been buying less pecans from Mexico too, importing just US$2.6 million so far in 2026, compared with US$53.2 million in the same period of 2024, according to Chinese customs data.
The Mexican government on Aug 10 expressed its concern in a statement about the preliminary ruling and reiterated its commitment to defending the interests of the country’s producers and exporters.
Products from some Mexican companies face a lower rate due to their participation in the probe, but China put a blanket 54.3 per cent rate on all American supplies because no US firms did, the Commerce Ministry said in a separate statement.
“China has consistently exercised prudence and restraint in its use of trade-remedy measures,” the ministry added, pledging to protect the rights of interested parties before issuing a final ruling.
The investigation was launched in September 2025 under China’s Anti-Dumping Regulations.
American pecans were already hit with 10 per cent tariffs in March 2025, as China retaliated against Trump’s levies.
The probe came weeks after Mexico announced plans to increase tariffs on China and other Asian nations as part of its budget proposal.
The tariff hikes, which aim to shelter domestic manufacturers from subsidised Chinese competition and satisfy a longstanding demand of Trump, were later approved by Mexican lawmakers in December.
Pecans were previously caught in the trade war during the first Trump administration, when China hit back against American pecans with 47 per cent tariffs that left farmers in Georgia and Arizona without a key export market. BLOOMBERG
