2 weeks Ago By [email protected] (Jessica Fleming-Montoya)
Shoppers get ready! On Saturday, February 1st, President Donald Trump announced that he'll be applying some big tariffs on Canadian, Mexican and Chinese imports. While this is something that the new president has been speaking about for a while, the tariffs are set to launch starting on Tuesday, February 4th. They'll include a 25% duty on goods coming from Mexico.
Canada will also be paying the 25% tariff, although there are some imports that will only incur a 10% tariff. China's tariffs will come in at 10%. While Canadian tariffs may raise alcohol, cereal, milk, fish, and cocoa prices , as far as the tariff on Mexico is concerned, it's fruit and veggies that are likely to come at an increased cost.
This is because Mexico is one of the US's top suppliers of fruits and vegetables. In fact, according to the USDA , in 2023 the United States imported over 60% of its vegetables and nearly 50% of its fruit and nuts from Mexico. As groceries will be subject to profit losses due to the tariffs, it's likely that they'll go ahead and put the cost on the consumer by increasing the price of goods to help maintain margins.
What kinds of fruits and veggies are likely to be affected? One piece of produce that's likely to see an increase in cost is avocados. The United States imported a whopping 2.8 billion pounds of the fruit in 2023, which was roughly 90% of the country's fruit supply.
If you're a fan of making homemade guacamole , that could mean that the cost of the main ingredient will skyrocket thanks to the tariffs on items like this one. Worse yet, with the Super Bowl right around the corner and avocado featuring in favorites such as nachos, one of the most popular Super Bowl party foods along with nachos and chili, this trade tariff is coming at an unfortunate time. In another blow to game-day festivities, the cost of imported beer and tequila may also rise.
It's not just avocados that are likely to see increased prices. Around 35% of the United States' orange juice supply also comes from Mexico. And, although there are U.
S. states that grow oranges, the country imports far more than it produces. Strawberries are another fruit in a similar position, with 20% of the country's strawberries coming from Mexican imports.
These types of price hikes are likely to be felt particularly during cold winter months, when growing produce isn't always an option for domestic producers, and other countries that provide imports, such as the Netherlands, are also experiencing their off-season. With this in mind, it might be time to stock up on your favorite fruits and veggies ahead of the tariff..
