About 40% of the fresh vegetables and 60% of the fresh fruit in the United States are imported.
And Mexico is the largest contributor among the countries of origin for those products, so if President-elect Donald Trump fulfills his most recent pledge to impose a 25% tariff on all goods imported across the southern border, U.S. consumers may see higher prices for a variety of produce and grocery items.
Mexico is the United States’ top foreign supplier of bell peppers, strawberries, raspberries, avocados, tomatoes, and avocados, according to data from the University of California, Davis.
According to the U.S. Department of Agriculture, Mexico accounted for 51% of all fresh fruit imports and 69% of all vegetable imports into the United States in 2022.
The value of Mexico’s horticulture exports to the United States increased fourfold between 2000 and 2021.
Beer falls under those categories, and given the popularity of Corona and Modelo—the latter of which is currently the most popular beer in the United States—a significant portion of American drinkers may also have to pay more.
Mexico’s advantages as a supplier of food to the United States stem from more favorable seasonality, which means that in some situations, the products arrive fresher since they may be cultivated all year round, and lower labor costs, which are sometimes one-fifth of those of agricultural worker compensation in the United States.
Trump has maintained that any tariffs his administration attempts to implement would be borne by the nations of origin. However, according to economists, such expenses would typically be borne by the importing businesses, who are theoretically based in the United States, and they would frequently pass those prices on to their final consumers, who are in the United States.
The same analysts, however, are still warning that Trump’s proposed tariffs, which would impose 25% charges on Canadian imports and an additional 10% tax on Chinese goods, would cause inflation to spike higher. Goldman Sachs analysts predicted in a recent report that Trump’s most recent proposals will raise inflation by almost 1%.
However, the analysts also emphasized that Trump’s announcement seems more like a “negotiating tactic” than a commitment to take action. Notably, his most recent remarks suggested a lower tariff level than the one he suggested during his campaign, at least in the case of China.
American shopkeepers, however, believe Trump is not bluffing.Walmart’s chief financial officer stated last week in an interview with CNBC that the big-box retailer was preparing for perhaps higher costs for its patrons.
John David Rainey stated, “We never want to raise prices.” Everyday cheap pricing are our model. However, there will most likely be instances where customers will pay more.
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