Tariffs on Canadian and Mexican goods take effect
Tariffs on Canadian and Mexican goods take effect
The tariffs President Donald Trump planned to put in place on Canadian and Mexican goods went into effect just after midnight. As initially planned, a 25 percent duty was put in effect for all imports from Mexico as well as most goods from Canada. Trump also added an extra 10 percent tariff on goods from China, 20 percent total.
Obviously, the tariffs will have significant impact on the produce industry.
This morning the International Fresh Produce Association posted on its website, “Today, March 4, marks the end of the 30-day tariff suspension imposed by U.S. President Donald Trump placed on tariffs on goods imported from Canada, China, and Mexico. IFPA is committed to advocating for policies that support fair and thriving international trade and will continue engaging with the administration, media and industry. The latest round of tariffs is expected to drive up costs for both the fresh produce industry and consumers, further intensifying concerns over rising prices. Given the essential role of fresh produce in supporting Americans’ health and nutrition, IFPA will actively seek exemptions for these products wherever the implementation process permits. Additionally, IFPA will continue providing the administration with data on the tariffs' impact on the produce supply chain to inform policy decisions. IFPA is committed to gathering comprehensive information on the consequences of the implementation of these tariffs, addressing members' concerns, and providing clarity on process. Details for a virtual town hall for IFPA members are forthcoming."
Similarly, the Canadian Produce Marketing Association has this posted on its site, “Our focus remains on advocating for free and fair trade across North America. We are actively engaging with government officials in Canada and the U.S. to seek clarity on the application of potential tariffs and to ensure that the voices of our members are heard. We will continue to work closely with our colleagues across Canada, the U.S., and Mexico to navigate these challenges and mitigate their impact on the fresh produce sector.”
About 85 percent of Ontario’s greenhouse production is exported to U.S. markets. Speaking in December, Ron Lemaire, president of the Canadian Produce Marketing Association, said "Any type of tariff will drive up costs to the consumer — and Canadian buyers will start to look at other suppliers.”
In 2024, the U.S. imported over $49 billion in agricultural products from Mexico, which included 47 percent of its vegetables and 40 percent of its fruits. Farm imports from Canada amounted to $41 billion.
This is a situation in which the produce industry has a lot invested. “FMI and our member companies stand ready to work with the Trump administration to help reduce inflationary regulations and improve the buying power of American consumers,” said Leslie G. Sarasin, president and CEO of FMI – The Food Industry Association. "American consumers value local farmers and local food products, but also availability of products 12 months of the year, which requires imports of food products. With 1.6 percent retail and 7.5 percent food manufacturing net margins, tariffs will put incredible pressure on our members. New tariffs will also drive up the cost of doing business and food prices at a time consumers are extremely concerned about prices.”