As promised, President Trump imposed various levels of tariffs on U.S. trading partners, calling it a national emergency.
However, USMCA compliant products from Canada and Mexico will see no additional tariffs. That covers compliant fresh fruits and vegetables, which is the majority.
Many in the produce industry have opposed and lobbied the administration against tariffs for fruit and vegetables, saying the increased costs and supply chain disruptions would raise prices for produce companies and ultimately for consumers.
“Fresh fruits, vegetables, and florals are among the most highly traded commodities across North America and beyond. Reducing trade barriers ensures that consumers continue to have access to fresh, affordable produce and floral products while supporting the growers and businesses that sustain the industry,” said International Fresh Produce Association (IFPA) CEO Cathy Burns in an April 2 statement.
“However, IFPA remains concerned about the broader application of tariffs on global trading partners and the resulting disruptions to supply chains, market stability, and food prices worldwide. The global trade of fresh produce is essential to the health and well-being of people in every nation. Targeted use of tariffs can be a tool for addressing inequities between trading partners, but broad application of this blunt tool often disrupts markets, raises consumer costs, and places unnecessary strain on growers and producers across the supply chain.
“Fresh produce trade is uniquely complex, shaped by seasonal and regional factors that require a well-functioning market for year-round availability. Once businesses lose market share, reclaiming it is difficult—if not impossible—dealing a lasting blow to an industry vital to food security and economic stability.
“We appreciate the administration’s commitment to easing regulatory burdens and supporting American agriculture. We urge continued efforts toward long-term solutions that benefit fresh produce growers and businesses, including equitable trade agreements, regulatory reform, and policies that promote a stable agricultural workforce.”
While Mexico and Canada products compliant under USMCA are unaffected, products from other countries will be.
President Trump is invoking his authority under the International Emergency Economic Powers Act of 1977 to impose a 10 percent tariff on all countries effective April 5 and individual reciprocal tariffs on countries that the U.S. has the largest trade deficits with.
The White House said, “President Trump is working to level the playing field for American businesses and workers by confronting the unfair tariff disparities and nontariff barriers imposed by other countries,” specifically citing that “Apples enter the United States duty-free, but not so in Turkey (60.3 percent) and India (50 percent).”