Donald Trump to Implement Tariffs on Agricultural Products

US President Donald Trump announced that tariffs on agricultural products will take effect on April 2, aiming to curb imports amid a growing trade deficit. The move could drive up food prices for US consumers already struggling with inflation, as Mexico remains a key supplier of fresh produce.

The president announced the measure through a message on his Truth Social account on Monday morning. “To the Great Farmers of the United States: Get ready to start making a lot of agricultural products to be sold INSIDE of the United States. Tariffs will go on external products on April 2nd. Have fun!” the message reads. So far, no details have been provided regarding the tariff amounts, which products will be affected, or whether there will be any exceptions.

In 2024, food and beverage imports from the northern country increased at an annual rate of 7.9%, reaching US$216.05 million. The most significant imports in the sector that year included meat products accounting for US$20.26 billion, fruits and juices with US$29.83 billion, bakery products with US$21.90 billion, and vegetables with US$21.48 billion. On the other hand, sector exports totaled US$165.25 million last year, reflecting a 2.1% annual increase, according to data from the Department of Commerce. According to a study by the Economic Research Service of the United States Department of Agriculture, there has been growth in imports over the past 10 years, which has contributed to a negative trade balance for the country during some periods. 

Mexico is the largest supplier of fruits and vegetables to the United States. Between January and November last year, exports accounted for US$46 billion out of the US’ total spending of US$196 billion on agricultural goods, as reported by the US Department of Agriculture (USDA). In response to the threat of tariffs, economists warn that this measure will put additional pressure on US consumers, who are already facing a tough economic situation marked by inflation in staple foods such as eggs.

Over the past year, the cost of eggs in the United States has doubled due to the spread of avian flu, with consumers now paying an average of US$4.95 per dozen, compared to US$2.04 reported in August 2023. The highest recorded price was US$7.30 on Feb. 7, marking a 10% increase in just one week and setting a new all-time high. Last week, the Trump administration announced plans to invest US$1 billion in a new strategy to mitigate the impacts of avian flu.

As a result of this situation, a rise in chicken prices has recently been reported, particularly affecting Mexico’s border states. According to data from INEGI, the Consumer Price Index for chicken in the Monterrey metropolitan area rose by 18.8% annually in the first half of February. However, the country’s egg production has remained stable, as Mexico is self-sufficient in that sector.

Brooke Rollins, Secretary of Agriculture, defended Trump’s plans to use tariffs to protect US agricultural interests. “His idea of using tariffs as a tool was very successful the first time. I have no doubt it will succeed again,” Rollins told reporters last week at the White House. This announcement came ahead of the 25% tariffs on Mexico and Canada implemented on March 4. This follows a one-month pause aimed at negotiating greater cooperation from both countries regarding US concerns over migration, drug trafficking, and national security.

Howard Lutnick, US Secretary of Commerce, highlighted that while Mexico and Canada have made efforts to improve border security, the ongoing fentanyl crisis remains a priority. "March 4 is about the border, and both Mexico and Canada have done a reasonable job. However, fentanyl continues to flow into the United States, with ingredients sourced from China and processed in Mexico and Canada. That must end,” Lutnick said in an interview with Fox News.

President Claudia Sheinbaum underscored that since October 2024, when her administration began, there has been a 49.94% reduction in fentanyl seizures at the border, according to data from the US Customs and Border Protection (CBP). Regarding the tariffs, Sheinbaum stressed that it is important to remain calm, as communication with the United States has remained positive; however, the final choice lies with President Trump. The Mexican president stated that regardless of the decision, various contingency plans are in place, so there is no reason for alarm. “If he makes a decision, we will make ours. The most important thing is that in Mexico, there is unity, and that strengthens us greatly,” she stated.