California Olive Industry Offers Warning for Chip Protectionism – Bloomberg

The California olive industry is cautioning against potential protectionist measures that could jeopardize the future of the chip industry.

Amid growing tensions in the U.S.-China trade war, the California Olive Oil Council (COOC) has issued a statement of warning about the consequences of implementing restrictive trade policies. The COOC suggested that such policies could have a detrimental effect on the chip industry, potentially resulting in higher costs for consumers and reduced availability of chips.

In its statement, the COOC highlighted the importance of the California olive industry to the chip industry, noting that it is the only state in the U.S. that produces both olives and chips. The COOC argued that any actions taken to restrict imports of Chinese chips could have a negative impact on the California olive industry, as it would lead to a decrease in demand for California olives.

The COOC also noted that, while the California olive industry is well-positioned to benefit from any increase in demand for chips, it is also vulnerable to any potential protectionist measures, as it is highly reliant on Chinese imports. The COOC argued that any restrictions on Chinese chips could lead to a decrease in demand for California olives, as the industry relies heavily on Chinese imports for its raw materials.

In addition, the COOC warned that any restrictions on Chinese chips could lead to higher costs for consumers, as the cost of chips would increase due to increased tariffs or other protective measures. The COOC suggested that the chip industry could be further harmed by any potential restrictions, as it is already facing a shortage of skilled labor and a lack of investment.

The COOC concluded its statement by calling on the U.S. government to take a more measured approach to trade policy, emphasizing the importance of avoiding any measures that could have a damaging effect on the California olive industry. The COOC argued that any steps taken to protect the chip industry should be balanced by measures to ensure that the California olive industry remains competitive and viable.