Mexico is the largest supplier of fresh produce into the United States and for importers it’s a relief the country got spared under the USMCA agreement. “We were saved this time. There’s nothing being tariffed on us coming out of Mexico so we’re fortunate,” says Lance Peterson of Super Starr International. “Mexico is a strong component of our sourcing,” adds Andrés Ocampo with HLB Specialties. “We are very relieved produce from Mexico is not tariffed, at least for now.” Rambutan, mangosteen, lychee, guava, papaya, and dragon fruit are some of the items imported from the U.S.’ southern neighbor. HLB also brings in tropical and exotic fruits from Brazil, Ecuador, Peru, and Chile, all subject to a 10 percent tariff, effective tomorrow, April 5. In addition, the company sources lychees from South Africa and young coconuts from Southeast Asia that are subject to a 30-50% tariff. “Our programs out of these countries are expected to be significantly impacted,” shared Ocampo.
“While a 10-percent tariff may not sound like a whole lot, our category is always on the edge of what people are willing to pay,” he commented. “The price tag on exotic fruits is higher compared to some other categories and an increase like this may make consumers shift away from exotics. A tariff could translate to a downturn in demand, which could result in supermarkets making different choices in terms of the produce items they want to carry. In my view, a tariff is much more complicated than adjusting the price of a product. In fact, it may result in certain products being priced off the shelves.” Garrett Patricio of Westside Produce added that “it is a huge hit to imported products with very little wiggle room currently available to offset the considerable cost.”
Samba Papayas from Brazil
Continue reading here: https://www.freshplaza.com/north-america/article/9720735/a-tariff-has-a-big-impact-on-liquidity-and-may-price-certain-products-off-the-shelves/?utm_medium=email
Source: Fresh Plaza
