California walnut growers are welcoming a significant trade breakthrough after the European Union reduced tariffs on U.S. tree nuts, including walnuts, to zero percent effective July 1, 2026.

The change comes through two implementing regulations formally adopted by the Council of the European Union on June 25 and published in the EU’s Official Journal on June 30. The legislation puts into force the tariff elements of the EU-U.S. Joint Statement reached in August 2025, which aimed to stabilize the transatlantic trading relationship after a period of tariff volatility.

For tree nuts, the new framework establishes a 500,000-metric-ton tariff-rate quota under which U.S. almonds, hazelnuts, walnuts, pistachios, macadamias, pine nuts and pecans, shelled or in-shell, can enter the EU duty-free. The quota volume applies over a twelve-month period beginning July 1 and also covers prepared and preserved nuts, such as roasted almonds and pistachios. Separately, the regulations set an unconditional zero tariff on a range of U.S. dried fruits, including prunes, raisins, dried apricots and cranberries.

“A Positive Development” for the Industry

The California Walnut Commission (CWC) issued a statement welcoming the change as a positive development for both the California walnut industry and European customers and consumers.

“The quota basis tariff reduction provides access to an important market, which is the walnut industry’s largest export market, importing about 30% of global supply,” the Commission said. “Improved access allows European importers, distributors, retailers and consumers to have access to high-quality California walnuts, while supporting the long-term sustainability of California walnut growers.”

The Commission noted that the news arrives at a critical moment for growers, many of whom continue to face rising production costs, increasing supply and a competitive and uncertain global marketplace.

“The CWC appreciates the efforts of U.S. and European policymakers, trade officials and industry stakeholders whose work contributed to this development,” the statement added.

Why It Matters for California

California produces more than 99 percent of the walnuts grown in the United States and accounts for roughly half of the global walnut trade. Europe’s position as the industry’s largest export destination, absorbing about 30 percent of global walnut supply, makes tariff-free access there a meaningful lever for grower returns at a time when input costs and global competition have squeezed margins.

The improved access also positions California walnuts more competitively against origins such as Chile and China in a market where U.S. product already commands strong recognition for quality and food-safety standards.

What Comes Next

The new tariff framework is not permanent. The regulations include a sunset clause: the measures remain in effect through December 31, 2029, and are subject to regular review by the EU regarding their impact on European agriculture. Industry observers note that trade volumes will bear watching, in 2025, EU imports of the most relevant U.S. nut categories only slightly exceeded the 500,000-metric-ton quota level, meaning shipments above the threshold in a given quota year could still face duties.

The nut and dried fruit provisions are part of a broader package under the EU-U.S. agreement, which also eliminated EU duties on U.S. industrial goods and lifted tariffs on products including lobster, while the U.S. agreed to cap tariffs on most EU-origin goods at 15 percent.

For California’s walnut sector, however, the takeaway on July 1 was straightforward: the industry’s single largest export market just became easier, and cheaper, to reach.