UPDATE: U.S. Tariffs on Mexican Imports
May 31, 2019
Thursday, May 30, President Trump announced the U.S. would be imposing tariffs on all Mexican imports effective June 10 if illegal immigration from Mexico did not subside. These tariffs would start out at 5 percent on June 10, increase to 10 percent on July 1, and then an additional 5 percent on the first day of each month for three months until reaching 25 percent.
Government imposed tariffs will have major implications on suppliers currently importing fresh fruits and vegetables from Mexico into the U.S. Many of these companies have significant investment in Mexico with infrastructure and seed in the ground for the upcoming summer season. Markon does not anticipate a shortfall in supply in the near-term, however, open market FOB’s are poised to rise on many commodities as a result of the tariffs.
Many grower/shippers are awaiting further details on whether or not these tariffs will actually make it into effect and for how long. Markon will continue to keep you updated as more information becomes available.
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