Banana producers and the Processing Industry's National Chamber (Canacintra) on Mexico's southern border have expressed concern about US President Donald Trump's 25%-tariff threat. Nicolás Castañeda Javier, president of Canacintra in Tapachula, indicated that concern persists because 80% of exports to the United States are from the agricultural and manufacturing sectors.
While the measures are on pause following President Claudia Sheinbaum's promise to send 10,000 National Guard agents to the US border, Castañeda Javier warned that, if implemented, they would impact income. This pause provides "a respite", but concern persists about the possible rise in the price of raw materials due to a potential trade war, he said. "These measures would make production costs skyrocket," he added.
According to Eduardo Altuzar López, president of the Asociación de Plataneros del Soconusco (Banana Producers' Association from Soconusco), exporters are worried because the price of a box of bananas could increase by 2.2 dollars on average, which would affect profits and could lead to renegotiation of contracts with transnational companies. Despite this, he called for a "vote of confidence" in the president with the expectation that "this issue will be resolved so that the 25% tariffs on Mexican fruit are removed."
Altuzar López also said that the resulting inflation could reach 25% and that the additional costs would make Mexican and Central American products uncompetitive. Currently, they are exporting 130 containers a week to the United States, and are looking for alternatives such as exporting to Japan. According to a report by the Mexican Institute of Competitiveness (IMCO), Mexico is the United States' largest trading partner, with exports valued at 490 billion dollars in 2023, i.e. almost 30 % of Mexico's GDP.
Source: efeagro.com