Implications of 25% tariff threaten U.S. - Mexico agri trade

The U.S. relies heavily on imported fresh produce, with about 60% of fresh fruit and 40% of fresh vegetables coming from abroad. Mexico is a major supplier, providing key items like tomatoes, avocados, raspberries, bell peppers, and strawberries.

In 2021, Mexico contributed 64% of U.S. vegetable imports and 46% of fruit and nut imports. Between 2000 and 2021, the value of Mexico’s horticultural exports to the U.S. grew four times, thanks to lower labor costs and ideal growing conditions that support year-round production. This strong agricultural partnership is critical to meeting U.S. fresh produce demands.

President-elect Donald Trump has announced plans for a 25% tariff on all imports from Mexico and Canada to address illegal immigration and drug trafficking into the United States. This tariff is set to begin on January 20, 2025, and will remain in effect until these issues are resolved.

The proposed tariff has sparked concerns about rising prices for groceries and fresh produce, underscoring the strong economic ties between the U.S. and Mexican food supply chains.

source: nbclosangeles.com

photo: agri-pulse.com