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Almond growers hopeful truce with China will lead to end of tariffs

Dave Phippen says California exports about 10 percent of its crop to China. Right now, there is an added 50 percent tax on almond prices by China. But, he hopes the three-month trade war truce between the U.S. and China announced over the weekend will lead to tariffs gone for good.

MANTECA, Calif. -- Dave Phippen's almond orchard in Manteca is dormant for the winter. But inside, that's not the case.

Usually, machines are dormant, too, at the Travaille & Phippen warehouse. Instead, crop tonnage is up, making it a potential record breaking year for the almond industry.

"Quantifiably, it's up 20-25 percent in the local area. I'm not talking about the whole state," said Phippen.

Phippen's almonds survived a February frost. And so far, he's surviving a trade war. With a truce in place with China, there's optimism a 50 percent tax already imposed will end.

"The almond industry is real excited to see things cool off a little bit. And, what we're really looking for is the ultimate outcome and hope the tariffs go away," added Phippen.

Phippen says China is a significant market for almonds exported by California, about 10 percent. The hope is that market will grow.

"Almond growers in California have invested a great deal of money in the Chinese market in particular to make consumers over there more aware of almonds and what they can do for them," Phippen said.

China is California's third largest overseas market. But, India is fast becoming a big buyer of the state's almond crop. And, Phippen says India keeps threatening to impose tariffs, too.

"So far they have punted on the decision to place a tariff going into India. They have done it three times. They are going to talk about it again the middle of this month," said Phippen.

And, he is hopeful India will punt it again, just like he is hopeful China will reach a deal with the United States, too.

Phippen says the hope is the Chinese emerging market will open up even more. His own crop last year was one of the worst in 20 years. But, despite a February frost, which threatened to cause serious damage to his crop, his almonds survived to become what he says is the "best crop in the state."

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