The United States relies heavily on imports for its fresh produce needs, sourcing approximately 60% of its fresh fruit and 40% of its fresh vegetables from abroad. Mexico stands as a principal supplier in this sector, contributing significantly to the U.S. market. Recent discussions around the imposition of a 25% tariff on all goods imported from Mexico by the President-elect have raised concerns over potential price increases for a variety of grocery and produce items in the U.S. market.
Research from the University of California, Davis highlights Mexico's pivotal role, particularly as the top foreign provider of tomatoes, avocados, raspberries, bell peppers, and strawberries to the U.S. In 2021, Mexico accounted for 64% of the U.S. vegetable imports and 46% of fruit and nut imports. The period from 2000 to 2021 saw a fourfold increase in the value of Mexico's horticultural exports to the U.S., driven by factors such as lower labor costs and advantageous growing seasons that enable year-round production.
The proposed tariffs could also impact the beer market, with popular Mexican brands like Corona and Modelo, the latter being the top-selling beer in the U.S., potentially seeing price hikes. The growth of Mexico as a key source of food imports to the U.S. underscores the complex interdependencies in North American agricultural and food markets.
Source: NBS Los Angeles