China Pecan Tariffs: Mexico and US Face New Cash Deposits

China's Ministry of Commerce (MOFCOM) has imposed preliminary anti-dumping duties on pecans imported from Mexico and the United States, with rates ranging from 17.8% to 54.3%. This decision threatens Mexico's primary export crop, as China is a significant market for Mexican pecans. The preliminary measures were enacted on August 11, 2026, one day after the announcement, and will require importers to pay cash deposits upon bringing pecans into China.

Mexican exporters face rates between 17.8% and 51.6%, depending on their cooperation with MOFCOM's investigation. Non-cooperating companies face the highest rate of 51.6%. In contrast, US exporters face a uniform rate of 54.3%, as none participated in the investigation. These tariffs are a response to China's allegation that dumped pecan imports caused material injury to its domestic industry, as determined by MOFCOM under China's Anti-Dumping Regulations.

The investigation began in September 2025, and a final ruling is expected later. The tariffs primarily affect Chihuahua, Mexico's leading pecan-producing state, which accounts for 59.7% of the national output. The new costs may force Chihuahua growers to seek alternative markets or absorb the higher expenses. Meanwhile, the United States remains the largest producer of pecans globally.

The tariffs come amid ongoing trade tensions between China and the United States, suggesting a possible link to broader trade negotiations. Chinese importers must comply with the new cash deposit requirements starting August 11, 2026. The final determination could adjust the rates, and Mexican growers should closely monitor how Chinese buyers react to the higher costs.