During the winter produce season, approximately 2,000 trucks enter the United States daily via the Mariposa port of entry in Nogales, Arizona. Many of these trucks transport fruits and vegetables from Mexican farms, causing concern among U.S. importers regarding potential tariffs on Mexican imports.
"Everybody started panicking," stated Miguel Romero, a salesman for the Sykes Company, which imports produce from Mexican farms to distribute across the U.S. In their Nogales warehouse, boxes of squash are prepared for dispatch to various retailers.
The industry is closely monitoring the proposal of a 25% tariff on Mexican products such as squash. Earlier, President Trump agreed to a temporary 30-day pause on tariffs following a deal with Mexico and Canada. Mexico committed to enhancing border security to curb illegal crossings into the U.S.
After this pause, border cities like Nogales may become focal points for trade disputes. Mexico remains the largest food importer to the U.S., supplying 63% of the vegetables in 2023.
Nogales customs broker Demetrio Kyriakis described the situation as "panic" and "chaos," noting that "it's a total game changer." Brokers assist importers like the Sykes Company with the complexities of international trade. Kyriakis reports a surge in inquiries since the tariff threats began.
New tariffs could disrupt a region accustomed to over three decades of free trade with Mexico. Importers have benefited from the North American Free Trade Agreement and the subsequent USMCA, which eliminated duties on Mexican produce.
Kyriakis expressed concerns about potential business closures and increased operational costs. Importers need to secure more costly bonds to bring goods across the border under new tariffs.
Despite understanding the rationale behind the pressure on Mexico, Kyriakis acknowledged, "I really do believe that in the case of Mexico, he is using it as leverage," to address illegal immigration and drug trafficking issues.
The border region is no stranger to uncertainty. Bill Sykes, founder of the Sykes Company, recalled similar concerns post-9/11 about potential border closures. He remains optimistic, stating, "Being in the produce business, you're going to see something new every year to contend with and you're going to learn from it."
Source: wbur