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U.S. food prices could rise due to President Trump's tariff decisions

The cost of avocados, tomatoes, berries, meat and countless other foods - both imported from Mexico and produced in California - could go up if new tariffs on Mexican products are imposed, reported Gosia Wozniacka in Civil Eats.

Last week, President Trump tweeted that the U.S. "will impose a 5% tariff on all goods coming into our country from Mexico, until such time as illegal migrants coming through Mexico, and into our country, stop." 

"I assume Mexico will retaliate," said Dan Sumner, director of the UC Agriculture and Natural Resources' Agricultural Issues Center. "Let's all hope this is a bluff and as summer progresses we'll be OK."

The United States is Mexico's largest ag trading partner. In 2019, $25.9 billion worth of ag goods came over the border from Mexico to the U.S. That amounts to 78 percent of Mexican ag exports of products like avocados, tomatoes, peppers, cucumbers, squash, onions, bananas, mangoes, limes and berries, to name a few.

Americans have become accustomed to purchasing a wide range of foods year round. Retailers look to Mexico, with its extended growing season, to supply fruits and vegetables in fall and winter when they aren't available in the U.S. The timing of the tariff threat makes it somewhat less damaging since we're entering the season when more produce is grown in California and other states, the article said.

Sumner said the real victims of the tariffs could be farmworkers.

"The [large] farmers have built this [cost] in. They have lost millions on other things before, it's part of doing business. But for farmworkers, if a family misses a couple of weeks of work and pay, that could be significant," Sumner said.

A tariff on Mexican food imports could result in higher produce prices. (Photo: Pixabay)
Posted on Thursday, June 6, 2019 at 2:08 PM
Tags: Dan Sumner (31)

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