Canada rolls out 25 per cent tariffs against US products while Mexico set to push tariff and non-tariff measures
Mexico and Canada have announced retaliatory measures against the US decision to impose 25 per cent tariffs on all goods imported from the countries.
Canada will roll out its own 25 per cent tariffs on a significant list of US products amounting to C$30bn starting on 4 February. The impacted products include tomatoes, nuts and seeds, citrus and stonefruit. A second, broader round of retaliatory tariffs will also be released in 21 days targeting an additional C$125bn (US$86bn) worth of US imports including more fresh produce categories, according to reporting from The Guardian.
Canada’s department of finance has said the countermeasures will remain in place until the US eliminates its tariffs against Canada.
Mexican President, Claudia Sheinbaum, has also ordered retaliatory tariffs against its northern neighbour.
In a statement posted on X, Sheinbaum said her government had sought dialogue rather than confrontation, but that Mexico had been forced to respond.
“I’ve instructed my economy minister to implement the plan B we’ve been working on, which includes tariff and non-tariff measures in defence of Mexico’s interests,” Sheinbaum said.
However, there was no word on which US goods Mexico would target.
Interdendence in fresh produce trade
The US is Mexico’s most important foreign market for fresh produce. According to Fresh Intelligence analysis, Mexico accounts for some 50 per cent of all US fresh produce imports. Of the 22m tonnes of fresh produce imported by the US in 2024, 11m tonnes came from Mexico.
The US is even more reliant on Mexico when it comes to avocado supply. Mexico accounts for 88 per cent of US avocado imports, according to Fresh Intelligence analysis, and it supplies around 80 per cent of total US avocado consumption.
Mexico’s National Agricultural Council (CNA) called for “unity and dialogue” in the face of US pressure.
Data shared by president of the Canadian Produce Marketing Association Ron Lemaire on LinkedIn underlined the ”strong interdependence” between Canada and the US in fresh produce trade.
Canada’s top-five fresh produce imports from the US in dollar value in 2023 included lettuce (C$476.7m), strawberries (C$464.7m), nuts (C$417.9m), grapes (C$270.7m), cauliflower & broccoli C$254.4m, and apples (C$215.9m).
The top-five Canadian fresh produce exports to the US meanwhile were cucumbers (C$718.8m), peppers (C$706.3m), tomatoes (C$694.8m), potatoes (C$593.2m) and mushrooms (C$427m).
Meanwhile in Asia, investors are bracing for a potential trade war in light of the 10 per cent tariff imposed on China.
The BBC reported Hong Kong’s Hang Seng Index was down 0.7 per cent, Japan’s Nikkei 225 was 2.8 per cent lower, South Korea’s Kospi tumbled 3 per cent and Australia’s ASX 200 fell 1.9 per cent in the days following US President Donald Trump’s announcement. Markets in mainland China remained closed for the Lunar New Year holiday.
