The effects of applying tariffs on Mexican food and beverages entering the United States market could result in an increase in the prices of everyday products such as beer, grouper fillet, margaritas with tequila, as well as fruits and vegetables. Although threats were navigated a few weeks ago, the possibility of tariffs being reimposed on April 2 is on the table.
Food and beverages are essential products and their prices are sensitive for both American and Mexican consumers. The implementation of tariffs will impact both nations, from consumers to producers in Mexico. An example of this is the grouper fillet caught off the coasts of Yucatán, whose increase in price due to tariffs would affect all links in its production and distribution chain.
In this scenario, the Mexican exporter would initially be responsible for paying the tariffs, but these costs would be passed along the chain. The importer in the United States, and ultimately the American consumer, would end up absorbing part of the tariffs. On the other hand, in Mexico, fishermen would be the most affected as they would receive lower payments for their products if tariffs impact prices.
The possible imposition of tariffs by the United States is framed within the intention to balance the trade deficit and reduce imports. In these negotiations, the primary sector, especially in food and beverages, is particularly affected, given the sensitive nature of these products in both countries.
For Mexico, the United States is a crucial partner in the agri-food sector, with a trade surplus that has been consistent for years. Last year, Mexico exported more than 54 billion dollars in food and beverages to the United States, highlighting products such as beer, tequila, fruits, vegetables, among others. Despite the uncertainty, there are arguments to believe that basic products such as food could be exempt from tariffs on April 2.
