Americans will be paying an extra $3 billion for avocados, tomatoes, mangos and other fruits and vegetables if 25% tariffs on Mexican imports into the U.S. take effect in October, according to the Fresh Produce Association of the Americas.
“This is a tax on healthy diets, plain and simple,” said FPAA President Lance Jungmeyer. “With the obesity epidemic, this is completely unacceptable and counterproductive in dealing with the migrant issue at hand.”
Americans consume $12 billion in Mexican fruits and vegetables a year, according to the U.S. Department of Agriculture.
“The latest threat from the President will harm American consumers and U.S. businesses first and foremost,” Jungmeyer added. “This takes us backwards as a country and threatens USMCA passage at a critical time in moving this agreement forward.”
The import tariffs come on top of 17.5% duties recently imposed by the Administration in Mexican tomatoes, duties which could raise prices 40 to 85%, according to an analysis from Arizona State University economists. "Additionally, fruit and vegetable growers from Florida and Georgia have convinced their Congressional delegation to withhold votes on USMCA unless Congress passes a Marco Rubio-led bill that would add even more duties or tariffs on Mexican produce", the FPAA shares. "Not only are these punitive tariffs and duties a tax on American consumers, they must first be paid by American companies."
“This is going to be a drain on Southwest border communities, where employers have already cut jobs due to other moves by the Administration to put pressure on the border,” Jungmeyer added.
On the other hand, the American Farm Bureau Federation is pleased with the progress.
“The administration’s submitting the Statement of Administration Action on the U.S.-Mexico-Canada Agreement to Congress is good news for U.S. farmers and ranchers. This notice means that we are one step closer to locking in vital market opportunities developed with our North American neighbors and expanding further on the gains we’ve made over the past three decades.
“The USMCA will provide new market access for dairy and poultry products and maintains the zero-tariff platform on most ag products. It includes provisions for improved health and safety standards that will reduce trade-distorting practices. It also contains measures that address cooperation, information sharing and other trade rules among the three nations related to agricultural biotechnology and gene editing. We still have work to do in some areas, such as addressing the timing of import surges from Mexico to ensure they do not harm our domestic fruit and vegetable sectors. However, we need to secure the gains that are in front of us today.
“The SAA begins a 30-day period after which the administration may submit implementing legislation for the USMCA to be considered by Congress. It is an important step toward a vote on the agreement.
“The USMCA is a hard-fought win for agriculture and we commend the administration for its efforts to solidify two of our most vital trade relationships. We now call on Congress to ratify the deal.”