"When the United States slapped a 241% tariff on Iranian pistachios nearly 40 years ago, it set the stage for one of America's biggest agricultural success stories. The trade barrier opened the door for small California farmers to build a new homegrown industry. Today, California supplies more than 60% of the world's pistachios, a significant portion of the global pistachio market that's worth an estimated $5.6 billion and projected to grow to over $7 billion by 2030."
"The pistachio precedent is an example where tariffs initially worked as intended - protecting an infant industry long enough for it to stand on its own. However, once the pistachio industry matured, consolidation followed. Only a handful of pistachio processors in California now dominate production. The same risk looms today for American business owners hoping Trump's tariffs will level the playing field."
"In the mid-20th century, Iran dominated global pistachio production, exporting millions of pounds each year, including to America. By comparison, America's "industry in pistachios was almost literally non-existent," said Bob Keenan, owner of Keenan Farms in California, one of the oldest pistachio processors in the US."
A 241% tariff on Iranian pistachios nearly 40 years ago created a market opportunity that allowed California farmers to establish a large domestic pistachio industry. California now supplies more than 60% of the world's pistachios, with the global market valued at about $5.6 billion and expected to exceed $7 billion by 2030. Tariff protection helped an infant industry grow, but maturation brought consolidation, leaving production concentrated among a few processors. Historical events, including Iran's mid-20th-century dominance and the 1979 revolution that halted Iranian exports, opened the gap California growers filled.
Read at Business Insider
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