Mexican President Claudia Sheinbaum and U.S. President Donald Trump held a call on Thursday, resulting in a temporary reprieve from sweeping tariffs that had been imposed just days earlier. The initial 25% tariffs on all Mexican imports, which began on March 4, led to a sharp decline in orders for agricultural products, raising concerns among Mexican growers about a potential recession.
César Rafael Ocaña, director of the Nexus Agriculture Business Council, warned that the uncertainty surrounding tariffs is already impacting Mexico's fresh produce industry. "If these tariffs remain, they will stifle the $55 billion in annual exports to the U.S. and create a recession that will hit rural areas the hardest," he said. Farmers have already seen reduced orders.
Following negotiations, Trump announced that Mexico would not face tariffs on goods covered under the United States-Mexico-Canada Agreement (USMCA) until at least April 2. "Mexico will not be required to pay tariffs on anything that falls under the trade deal," he said after speaking with Sheinbaum. However, other products remain subject to duties, and additional exemptions may be announced.
The Florida Tomato Exchange and other U.S. industry groups have been pushing for stricter enforcement of anti-dumping measures on Mexican produce, leading to heightened scrutiny of agricultural imports. Meanwhile, Trump's administration has hinted at the possibility of further tariff exemptions for select industries, with Commerce Secretary Howard Lutnick expected to provide updates soon.
While the tariff pause has brought temporary relief, Mexican officials remain cautious about long-term trade stability. Sheinbaum, who initially planned a rally in Mexico City to address the tariffs, has now rebranded the event as a "festival" to celebrate the diplomatic breakthrough.
Trump, who had also imposed tariffs on Canadian imports earlier in the week, extended the same USMCA-related tariff exemptions to Canada. Despite his claims that the move was unrelated to market fluctuations, the S&P 500 dropped 1.8% on Thursday amid investor concerns over trade uncertainty.
Trump's tariff policies continue to spark debate, with supporters arguing they strengthen the U.S. negotiating position while critics warn of economic disruptions for both American businesses and trading partners. For Mexico, the temporary relief offers breathing room, but farmers and exporters remain wary of potential long-term impacts.
Source: Reuters
Source: Border Report
Source: The Guardian