NOGALES, Ariz. (KGUN) — The threat of tariffs from President-elect Donald Trump could threaten an industry that puts food on the table and billions of dollars into the Southern Arizona economy. KGUN 9 has more on the possible impact on the Mexican produce industry.
In Nogales bringing fruits and vegetables across from Mexico is about a five billion dollar industry but what could happen to that industry and all the people who depend on it if the Trump administration imposes tariffs on that food?
Trucks by the thousands bring food by the ton through the Mariposa Port of Entry in Nogales. Jaime Chamberlain of Chamberlain Distributing says the produce alone is worth about five billion dollars before you consider the ripple effect of industry workers and how they spend their pay across the economy.
But President-Elect Trump has promised to impose stiff tariffs—fees on foreign goods as they cross into the country.
Chamberlain thinks the administration will not impose tariffs on Mexican produce but will use the threat of tariffs as leverage to compel Mexico to help with other problems.
“Somebody has to be able to say, look, I would like for you to help with the issues, whether it's stemming the flow of illegal migrants coming to the United States, or whether it's stemming the flow of the hard narcotics, the fentanyl, the methamphetamines, the heroin, the cocaine that's coming up from Mexico to the United States. Those are things that we need help with here in the United States.”
Lance Jungmeyer leads theFresh Produce Association of the Americas, the association that represents Mexican produce importers. He doubts tariffs will hit the Mexican produce industry. He says you can’t raise tariffs on food and keep the promise to lower food prices too.
“It's pretty counterproductive to that pledge of not raising inflation. People need to eat healthfully, and when you potentially put tariffs on Mexican fruits and vegetables, you would see prices go up quite a bit at the grocery store.”
And because produce that comes through Nogales goes all over the country, tariffs on Mexican produce could have a national impact.