On March 6, 2025, US President Donald Trump announced a temporary delay on the 25% tariffs for goods under the United States-Mexico-Canada Agreement (USMCA). The delay, lasting until April 2, 2025, affects trade between the US, Mexico, and Canada. Initially, Mexico was exempted, but this was later extended to Canada following diplomatic efforts and public pressure from US industries dependent on goods from these nations.
© Mintec/Expana
As the US continues its unpredictable tariff policies, particularly regarding Mexican produce, companies are adjusting rapidly to potential price increases and supply chain disruptions. This has led some distributors to cancel orders or alter sourcing strategies for items like avocados, broccoli, and mangos. Mexico exports about 80% of its goods to the US, much of which originates from factories near the border. The US imports around 42% of its fruits and vegetables from Mexico and roughly 12% from Canada. With an importing value exceeding $28.4 billion, a 25% tariff could add approximately $7.1 billion in additional costs.
President Trump's threat of a 200% tariff on European wines, including Champagne, also remains a concern. While the focus is primarily on wine, this potential tariff could impact the broader fruit sector. Grapes, essential for wine, could see cost increases, affecting grape-based beverages like fruit juices.
The temporary tariff delay offers immediate relief, but uncertainty remains as the expiration in early April approaches. The potential reinstatement of tariffs and threats regarding European wine tariffs complicate the outlook for the fruit and vegetable sector, especially for importers with tight margins. The sector is navigating between unpredictable tariffs and a volatile economic environment.
Source: Mintec/Expana