From gratefulness to rejection: The fresh produce industry reacts to the newest US tariffs

As expected, countries affected by the most recent tariffs on American imports rejected the announcement made by the United States Trade Representative (USTR) on Thursday. 

Meanwhile, reactions in the fresh produce industry have been slightly more varied. While some organizations have expressed their utter discontent with the new provisions, others have centered their messages on thanking the Trump Administration for its special attention to the sector.

A focus on tariff exemptions

The International Fresh Produce Association (IFPA) expressed its appreciation for the recognition of the industry’s unique import needs and celebrated the tariff exemptions for products the United States doesn’t produce commercially. 

“These exempted products include many produce seed varieties and tropical produce items such as bananas, pineapples, and avocados, which much of the US does not have the climate to produce either at all or at scale,” the statement read.

Regarding the floral industry, which IFPA also represents, the association thanked the White House for including floricultural products in trade deals with large providers, such as Ecuador, Guatemala, and Mexico. 

However, the organization expressed concern for suppliers whose products were not exempted, such as Colombia and the European Union. This unequal situation, IFPA explained, creates “a patchwork of tariff structures that increases costs and complexity for the US floral industry.”

Tom Stenzel, head of the Banana Association of North America (BANA), also had a positive reaction to the announcement, saying his organization “is pleased that an exemption for bananas imported into the US continues in this new round of tariffs.”

“An unnecessary trade barrier”

Unlike fresh produce organizations in the US, industry bodies in countries and regions affected by the newest swath of tariffs were not pleased by the newest levies. 

In a statement, Australia’s National Farmers Federation (NFF) said it was “deeply disappointed” about the 12.5 percent tariff imposed on the country’s exports to the US, calling the provision “a step in the wrong direction.” 

“Rather than moving back towards the free and fair trading arrangements that have served both our countries well for two decades, the United States has chosen to further increase barriers to trade, despite Australia’s longstanding record of high standards and responsible trade,” said NFF Chief Executive Officer Michael Guerin.

Likewise, the Federation of Rural Associations of MERCOSUR (FARM, for its initials in Spanish) also expressed its concern about the latest US tariffs. 

In a statement, the organization rejected the American trade actions and said it didn’t accept the country’s accusations against the MERCOSUR ag sector. 

“For decades, we’ve demonstrated our commitment to efficient, sustainable, and competitive production, respecting international treaties, such as the International Labor Organization’s, that prohibit forced labor,” read the document. 

The industry body also added that unilateral tariffs generate uncertainty and threaten trade and investment, deeply and negatively affecting the global supply chain. 

“We call on the US government to privilege dialogue, cooperation, and institutional channels to address differences and avoid discretionary and discriminatory measures,” it added. 

Finally, in Chile, industry body Frutas de Chile emphasized that the 12.5 percent tariff on the Andean country is not a final ruling proving the existence of forced labor in the local fruit industry. 

“We will continue to work with the authorities to reach a solution that allows us to protect our two countries’ trade relationship, which has been beneficial to both parties over decades [...] Our priority is to move forward toward a bilateral negotiation that enables us to revise this measure," said Iván Marambio, president of Frutas de Chile.

*All images are referential via Shutterstock.

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