The Impact of Potential Tariffs on Fresh Produce Prices and Supplies in the U.S.
By the World’s Best Investment Manager and Financial Market’s Journalist
Experts Warn of Potential Rise in Produce Prices and Shortages in U.S. due to Tariffs
President-elect Donald Trump’s plans to impose tariffs on goods from Mexico and Canada could lead to higher prices and shortages of avocados, strawberries, and other fresh produce in the U.S., according to agricultural economists and industry executives.
With Mexico and Canada being the top two suppliers of farm products to the United States, valued at nearly $86 billion last year, the impact of tariffs on food shipments could have significant financial and operational effects on U.S. supplies.
Consumers may face out-of-stock items at grocery stores and restaurants, with potential menu changes and decreased portions due to fewer fruits and vegetables available. About two-thirds of all U.S. vegetable imports and half of fruit and nut imports come from Mexico, highlighting the nation’s reliance on its neighbors for feeding its population.
Avocado exports to the U.S. have seen a significant increase in recent years, with the market accounting for a large portion of Mexico’s total avocado exports. The potential tariffs could lead to an inflationary spiral, impacting costs, prices, and inflation rates.
Additionally, imports of beer and tequila from Mexico, essential for making cocktails like margaritas, could also be affected, along with the migration of cattle for the U.S. beef supply. The disruption in shipments of beef, dairy cattle, and hogs between the U.S. and Canada could further impact producers in both countries.
Overall, the threat of tariffs could have long-term implications on agricultural trade deficits, consumer prices, and the reliability of the U.S. as a trading partner. As the U.S. prepares for renegotiation of trade deals like USMCA, the effects of potential tariffs on fresh produce highlight the interconnectedness of global markets and the importance of trade relations for consumers and producers alike.