Good afternoon,
IMPORT TARIFFS were the main point of discussion earlier this week as the President of the United States implemented 25% tariffs on imports from Mexico and Canada. As the political landscape is more volatile than ever, even Monday morning we were unsure if these restrictions would take effect. By the end of the day, there was a pause on both of these restrictions for 30-days. While our hope is that this trade war is stopped before it begins, it is important to understand the implications if the restrictions were put in place.
During the year, seasons change as do growing areas. Below are the goods that we source out of Mexico at some point during the year:
ASPARAGUS, AVOCADOS, BANANAS, BEANS, BELL PEPPER, BERRIES, BROCCOLI, BRUSSELS SPROUTS, CABBAGE, CARROTS, CAULIFLOWER, CELERY, CILANTRO, LEMONS, LIMES, ORANGES, CORN, CUCUMBER, GARLIC, GINGER, GRAPES, GREENS, GREEN ONIONS, LEEKS, LETTUCES, MANGOES, MELONS, ONIONS, PARSLEY, PINEAPPLE, SQUASH, AND TOMATOES.
And CANADA:
ASPARAGUS, BEANS, BELL PEPPER, BERRIES, BROCCOLI, CABBAGE, CARROTS, CAULIFLOWER, CELERY, CILANTRO, CORN, CUCUMBERS, GREENS, GREEN ONIONS, LEEKS, LETTUCES, POTATOES, ONIONS, SQUASH AND TOMATOES
As you can see, the list of products imported from our neighbors to the north and south is extensive. It is important to note that Mexico and Canada are not the ONLY suppliers for those products. At some points of the year, they may be the only source but in many cases, there would be multiple options available. A set cost increase of 25% would certainly change markets on both imported and domestic production but the ebbs and flows of perishable markets could leave many of those figures buried in the wash. From week to week we can see more than 25% volatility just due to changes in the weather, so although we will remain vigilant on these costs, we must also remain practical.
More as it happens,
Parker Tannehill