Incoming Tariffs and Food Prices: What You Should Know

Since January 20, I’ve kept a close eye on the news from Washington, DC, so that I don’t miss policy changes that might impact The FruitGuys’ business, staff, partners, and/or clients. There’s so much happening that it can feel overwhelming, but I want to give you a heads-up about two executive orders that will have a real impact on US food businesses: The tariffs on Mexico and Canada.

New Tariffs on Mexico and Canada

These executive orders put 25% tariffs (taxes) on most goods imported from Mexico and Canada, making it more expensive for American companies to buy them. As I write this, both tariffs could go into effect in as little as 30 days.

Why These Tariffs Matter

Mexico supplies a large chunk of the US’s fresh produce, particularly when local harvests slow down. Canadian imports account for a smaller percentage of what we eat, but they still matter, especially when it comes to vegetables.

According to the United States Department of Agriculture (USDA), “In 2023, Mexico and Canada supplied 51% and 2%, respectively, of US fresh fruit imports, and 69% and 20%, respectively, of US fresh vegetable imports in terms of value.” 

For most produce suppliers, margins are already slim, and a 25% increase in costs may ultimately be passed on to customers like you—not just for fresh produce but for other goods as well, like packaged snacks that use imported ingredients.

How These Tariffs Impact The FruitGuys

The FruitGuys always buys local first. We prioritize supporting regional farmers and keeping our supply chain as local and sustainable as possible. But we do use imported bananas (considering they’re the most popular office fruit, I wish they grew closer to home!) and occasionally bring in other imported items to keep our mixes interesting and exciting.

For example, when berries, avocados, or cucumbers aren’t in season in the US or supplies are low, we might source them from Mexico. The tariffs will increase our costs for those imports. We’re not increasing prices for customers right now, but we’ll continue to monitor the situation. 

What All This Means for You

Though The FruitGuys isn’t changing its prices, as the tariffs go into effect you’ll likely see price adjustments across the food industry. Keep an eye out for changes at grocery stores and restaurants, since some of them use imported produce from Canada and Mexico. Consumer products like snacks might also get more expensive in the coming months. We’re staying in touch with our snack partners to keep up to date on how and if they’re impacted by the tariffs.

The FruitGuys team and I will continue to keep you informed on this situation. If you have any questions, please let us know. We’ll do our best to answer them.

Regardless of when and where tariffs land, we’ll continue to do what we love, which is connecting people through delicious food, feeding those in need, and supporting small farms.