Plant Sciences’ Steve Nelson fears impact on winter imports from Mexico will mean a rise in prices for buyers in the US
The head of one of North America’s leading berry breeders says any attempt to place tariffs on imports from Mexico and Canada could lead to further increases in the prices consumers, retailers or importers pay for fresh produce.
Steve Nelson, director at the newly restructured Plant Sciences Genetics, told Fruitnet he understood Donald Trump’s tactic on the world stage was to try and strongarm his opponents, but feared there would be adverse consequences for the US market itself.
“Trump is well known for setting expectations for the negotiation – in this case, his desire to stop the flow of illegal border crossings and fentanyl,” Nelson commented. ”That said, he was partly elected by a consumer base who punished the status quo for exceedingly higher pricing for many things in the past few years, including and maybe especially groceries.”
With more than half of all fruits consumed in the winter in the US coming from Mexico, and the latest data suggesting over 70 per cent of winter veg comes from the same country, the risk of higher prices was clear, Nelson suggested.
“To implement a 25 per cent tariff on all goods from Mexico would surely result in further food inflation. And that is something he will want to avoid,” he said. “I expect he wants to negotiate from a perceived position of strength. Tariffs are rarely the answer but they may start the conversation with greater emphasis.”
He added: “Whatever ultimately happens regarding the implementation of tariffs, hopefully any use of tariffs, to facilitate a negation, are efficient, short-lived, and effective. I prefer a thoughtful negotiation, but it seems these days little is accomplished politically that is either thoughtful or without some bravado.”
