US retailers are bracing for higher produce prices as a 25% tariff on Mexican and Canadian imports took effect Tuesday. Target CEO Brian Cornell warned that shoppers will likely see price increases over the next couple of days.
The tariffs, part of a trade war sparked by the US, will hit Mexico and Canada hard, with Mexico supplying 51% of fresh fruit imports and 69% of fresh vegetable imports in 2022. Canadian Prime Minister Justin Trudeau has retaliated with a 25% duty on $155 billion worth of American goods.
Economists predict that the tariffs could lead to price hikes on a range of products, depending on how much businesses transfer costs to consumers. A study by the Federal Reserve Bank of Atlanta estimates prices could rise by up to 1.63% if all costs are fully transferred.
Mexican President Claudia Sheinbaum has vowed to announce retaliatory measures against US products next week, warning that the tariffs will cause damage to both countries’ citizens and businesses.
Source: https://www.forbes.com/sites/saradorn/2025/03/04/trumps-tariffs-could-raise-prices-of-fruits-and-vegetables-within-days-target-ceo-warns