Threat of 25% tariff threatens banana exports in southern Mexico

Banana producers and business leaders from Mexico's southern border voiced concern on Tuesday over a potential 25% tariff that the United States could impose on fruit and other agricultural products.

Local growers warned that the measure would severely impact the region, as eight out of ten products exported to the U.S. are agricultural or manufactured goods. While the tariffs are temporarily on hold, following the deployment of 10,000 National Guard agents to the border, farmers remain worried that the threat has not passed.

This pause offers some relief, but producers are still concerned about rising production costs if trade tensions escalate. The tariff would increase the cost per box of bananas by $2.20, cutting into profits and forcing exporters to renegotiate contracts.

Despite the uncertainty, there is hope that President Claudia Sheinbaum will successfully prevent the tariff and safeguard fruit exports.

A rise in costs would weaken the competitiveness of Mexican banana growers compared to Central American producers, as labor, fertilizers, and sanitation expenses are already high.

Currently, around 130 containers of bananas are shipped to the United States every week, but exporters are now exploring other markets, such as Japan, to reduce dependence on the U.S..

Producers fear that a trade war could severely affect Chiapas and other border regions, where banana farming is the primary source of income for many families.

source: efeagro.com

photo: bananotecnia.com