When India implemented a 20% tariff on top of an existing 50% tariff on U.S. apples in June 2019, Brian Norwood saw a major drop in the exportation of Washington state apples to India.
Before the additional tariffs were enacted, Brian Norwood, export sales manager for apple grower Gee Whiz II in Orondo, Wash, said his company shipped approximately eight million cartons of apples to India every year. Four years later, the company’s exports to India fell to about 250,000 cartons per year. However, with the Trump administration gone, India lifted the additional 20% in tariffs six months ago and the apple business picked up.
The story of apples demonstrates how former President Donald Trump’s decisions to enact tariffs on some imports in the interest of U.S. national security boomeranged on American producers, hurting local economies across the country.
“It’s had a big impact in the positive direction this year with the additional tariffs being lifted,” Norwood said.
In 2017, Washington state apple exports to India amounted to $120 million in revenue, the U.S Department of Agriculture said. In comparison, the 2022/23 season only amounted to less than $1 million in sales.
On June 15, 2019, India implemented tariffs on 28 U.S. products as a result of Trump’s calling for Section 232 of the Trade Expansion Act on India’s steel and aluminum while simultaneously ending India’s Generalized System of Preferences status.
“The Generalized System of Preferences are these concessional sort of rights,” said Asli Leblebicioglu, economist and associate professor at Baruch College in New York City. They can be seen as special treatment, in the form of lower tariffs, to developing countries. Such preferences make it easier for developing countries to export their products, allowing them to grow their economies, Leblebicioglu said.
In September 2023, India lifted tariffs on two non-agricultural products and five agricultural products: almonds, walnuts, chickpeas, lentils and the most important for Washington state, apples.
“Washington accounts for 90% of the apples exported from the United States,” said Jennie Strong, international marketing specialist at Washington Apple Commission. “These tariffs essentially forced us out of the market.”
“Washington state apple growers saw their share drop from 53% to less than 1% in four years,” Strong said of apple exports to India. “The retaliatory tariff was dropped on September 6, once again, giving the Washington apple industry equal footing with competitors in the Indian market,” she said.
With the imposition of the 2019 tariffs, Washington apple growers slowed their marketing. Now, the marketing programs are coming back.
Apple production in the U.S. is projected to increase 1.5% for the 2023/24 season, according to the U.S. Department of Agriculture. In Washington, production is expected to pick up by 9% from last season. According to the University of Washington, Washington apple season runs August – November.
Source: USApple Industry Outlook Report 2023.
“Given the increase in domestic production volume and the challenge of stagnant consumption, maintaining and expanding market share in export markets, including India, is considered critical for the survival of the U.S. apple industry,” reads a study conducted by Kwanyoung Lee, R. Karina Gallardo, and Miguel Giacinti on the effects of the India tariffs on fresh Washington apples. Kwanyoung Lee is a research associate at the Korea Culture and Tourism Institute and the Cultural Industry Research Center, R. Karina Gallardo is an associate professor and extension specialist at Washington State University and Miguel Gacinti is the CEO at Fruit and Vegetable Information Center.
In India, “apples are the most heavily consumed imported fruit, with consistent, year-round sales,” this can be attributed to the rising population, higher disposable income, appreciation of health benefits, and accessibility and convenience when shopping, according to the Foreign Agricultural Service. China and Chile also export apples to India and they are regarded as the U.S.’s top competitors in the Indian market.
The study found that by lowering tariffs, prices would decrease and demand for U.S. grown apples would increase. Moreover, a “complete free trade would favor U.S. apple producers,” as India regards U.S. apples to be of higher quality than those from China.
“The apples in the United States go by a strict process of washing, sanitizing, and storing in optimal conditions,” said R. Karina Gallardo, extension economist and professor at Washington State University.
Washington state’s weather and soil are ideal for growing apples without fertilizers and pesticides. 
“The conditions in the state of Washington allows for low-input type of production,” Gallardo said.
Strong, the marketing specialist at Washington Apple Commission, said roughly 73,000 40-pound box equivalents from Washington state shipped to India for estimated sales of $1.3 million. For 2023/24, roughly 1.4 million 40-pound box equivalents have shipped to India with estimated sales being close to $23 million.
The rural communities of the state of Washington were the most affected by the increasing tariffs. Now, the leasing of the tariffs will steer the regional economy in the positive direction.
“The tariffs being lifted was a big win for both trade policy and for Washington apple growers,” said Strong.
Sources: USDA, National Agricultural Statistics Service; USApple Industry Outlook Report 2023.
