Trump also imposes 10 per cent duty on China and promises ’substantial’ tariff action against EU, as North America’s fresh produce trade braces for impact
The US is to apply a 25 per cent tariff on all imported goods from Canada and Mexico, as well as a 10 per cent duty on Chinese imports, from Saturday 1 February, in a move that industry leaders say could cause widespread disruption to North America’s fresh produce market.
The move, which the White House said was in response to issues around migration and narcotics, threatens to add considerable cost and complication to some of the world’s biggest fruit and vegetable supply chains.
US president Donald Trump also said he planned on “doing something substantial” when it came to tariffs on importe from the European Union.
Mexico’s produce business faces perhaps the greatest impact, with billions of dollars’ worth of items including avocados, tomatoes, berries, citrus, peppers and mangoes all crossing its border into the US each year.
In 2023, the country’s international fruit and veg sales were worth around US$14.7bn, with the US taking more than 90 per of those exports.
Just over a week from the Super Bowl, an occasion that represents a peak period in the US for sales of the country’s avocados, its exporters now face arguably their biggest commercial threat ever.
AgTools data show that, between the start of February and the end of April 2024, Mexico shipped more than 10,000 tonnes of avocados worth about US$54m to its northern neighbour.
Canada’s produce exports to the US, while smaller in volume and value, are nonetheless significant, including a large amount of tomatoes, peppers, lettuce and other vegetables, as well as fresh berries, apples, and cherries.
Concern for consumers
Speaking back in late November when Trump’s intention to introduce levies on Canadian and Mexican goods first became known, Carlos Madariaga of Mexican exporter Berries Paradise told Fruitnet: “Imposing tariffs on Mexican and Canadian products could lead to negative consequences for the region, the US included, potentially resulting in increased inflation and a decrease in overall consumption.”
Richard Schouten, director of the Fresh Produce Centre in the Netherlands, told last week’s Fruit Logistica media briefing he was concerned about tariffs on Mexico and Canada, and in particular the potential knock-on effect on the fresh produce business elsewhere.
“If they want to export to the US and they face a 20 per cent tariff, that could disturb the market,” he warned. “I already heard that the Mexican people are looking at new markets, for example India, Indonesia, Japan, China and Russia, but also Europe. That will influence the price of products like avocados.”
Since Trump confirmed his plan to introduce the duties, Canada has said it would retaliate with “forceful but reasonable” counter-measures, while Mexico has also indicated it has a plan to deal with the move. China, for its part, is said to be ready to “firmly defend” its interests.
