The tariffs that the Trump administration planned to go into effect this week on Canada, Mexico, and China have been paused for one month.
Mexican President Claudia Sheinbaum Pardo wrote on X this morning that after a conversation with President Trump, he agreed to pause the tariffs. She wrote that Mexico agreed to reinforce its northern border with 10,000 members of the National Guard to prevent drug trafficking.
Over the weekend, the Trump administration said it would place a 25 percent import tariff on products from Canada and Mexico and an extra 10 percent on products from China.
The tariffs were expected to take effect on Tuesday, February 4. Agriculture will play a key role, especially fresh vegetables.
Canada has already announced it plans to retaliate with tariffs on U.S. goods, while Mexican leaders have said they will also retaliate if tariffs are imposed but have not announced specifics yet.
Mexico supplies about half of the U.S.’s fresh produce, and Canada supplies about 2 percent.
The tariffs would essentially end the United States-Mexico-Canada Agreement (USMCA), which began in July 2020 and led to relatively free trade among the three nations.
The Trump administration says the tariffs are necessary to hold Mexico and Canada responsible for their roles in halting illegal immigration and the shipments of illegal drugs such as fentanyl into the United States.
The administration also says accessing the U.S. market is a privilege, and trade accounts for 67 percent of Canada’s GDP; 73 percent of Mexico’s GDP; but only 24 percent of the U.S. GDP, so the tariffs will harm U.S. trading partners proportionally more.
International Fresh Produce Association BB #:378962 told members on February 1, “in the immediate term, the U.S. Customs and Border Patrol is the best source of information for importers bringing goods into the United States. Importers should expect these tariffs to begin in earnest within days, not weeks [posted before the one-month pause was announced].
“As previously noted, IFPA will continue to advocate its position on trade and tariffs, included below, with the Trump administration, media, and industry:
“IFPA believes that every nation that can feed itself should do so. And, like many agricultural organizations, we firmly support fair and thriving international trade. Fair trade expands markets, drives prosperity, and ensures access to fresh, nutritious foods worldwide.
“U.S. fresh produce growers and suppliers play a pivotal role in this system, feeding Americans and consumers worldwide while fostering mutually beneficial trade relationships. Fresh produce, specialty crops, and floral products are among North America’s most actively traded commodities. A secure and sustainable food supply – domestic and worldwide – thrives with strong and reliable access to global markets.
“Targeted use of tariffs can be a tool for addressing challenges or inequities between trading partners. However, the broad application of tariffs can disrupt supply chains, threaten market expansion, increase costs for consumers, and place unnecessary strain on growers and producers.
“To improve the competitiveness of producers while keeping food affordable for consumers, IFPA advocates for swift and meaningful regulatory relief and reform as the most effective way to support agriculture and strengthen American food security. We look forward to working with the Trump administration to advance policies that empower growers, expand market access, and ensure a competitive, resilient agricultural sector that benefits producers and consumers.”
