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A New Tariff on Mexican Goods Will Impose A $3 Billion Food Tax on American Consumers, According to U.S. Produce Importers and Distributors
May 31, 2019 – Nogales, Arizona – Americans will be paying an extra $3 billion for avocados, tomatoes, mangos and other fruits and vegetables if 25% tariffs on Mexican imports into the U.S. take effect in October, according to the Fresh Produce Association of the Americas.
“This is a tax on healthy diets, plain and simple,” said FPAA President Lance Jungmeyer. “With the obesity epidemic, this is completely unacceptable and counterproductive in dealing with the migrant issue at hand.”
Americans consume $12 billion in Mexican fruits and vegetables a year, according to the U.S. Department of Agriculture.
“The latest threat from the President will harm American consumers and U.S. businesses first and foremost,” Jungmeyer added. “This takes us backwards as a country and threatens USMCA passage at a critical time in moving this agreement forward.”
This comes on top of 17.5% duties recently imposed by the Administration in Mexican tomatoes, duties which could raise prices 40 to 85%, according to an analysis from Arizona State University economists.
Additionally, fruit and vegetable growers from Florida and Georgia have convinced their Congressional delegation to withhold votes on USMCA unless Congress passes a Marco Rubio-led bill that would add even more duties or tariffs on Mexican produce.
Not only are these punitive tariffs and duties a tax on American consumers, they must first be paid by American companies.
“This is going to be a drain on Southwest border communities, where employers have already cut jobs due to other moves by the Administration to put pressure on the border,” Jungmeyer added.
About the Fresh Produce Association of the Americas:
The FPAA is a nonprofit trade association headquartered in Nogales, Arizona, that represents over 120 U.S. member companies involved in importing, sales and transportation of fresh fruits and vegetables grown in Mexico. The FPAA leverages the efforts of private companies and partner-associations to increase the consumption of fresh fruits and vegetable from Mexico. For more information, go to: https://www.freshfrommexico.com