PHARR, Texas (ValleyCentral) — President Donald Trump is set to impose tariffs on imported goods from Mexico and Canada, which has local produce companies worried.
Jose Crespo, manager at RCF Distributors, says 90% of his product comes from Mexico.
RCF distributes fruits and vegetables all across the country, including in states like Washington and California. The company has been based here in the Rio Grande Valley for 25 years.
Crespo says Trump’s recent talk on raising tariffs by 25% on imports from Canada and Mexico has people on edge about what could happen next. Although President Trump and Mexican President Claudia Sheinbaum did agree to put a pause on the tariffs, it is still worrisome.
“Here, in the Valley, the people are worried because they know the price will increase. The cost of every product will increase, whether it is mangos, pineapples, or watermelons,” said Crespo. “All the products will increase in cost.”
There are currently 60,000 cases of fruits and vegetables in this warehouse. However, Crespo says the fruit that brings the most movement is the mango. Most of the company’s mango comes from Mexico.
“It is 85% of our movement. We carry mango from southern Mexico: Oaxaca, Chiapas, Michoacana and northern Mexico,” said Crespo.
U.S. Rep. Vicente Gonzalez, D-Texas, says without a doubt Texas will be the state that takes the hardest hit if these tariffs go into effect, because of its heavy reliance on trade with Mexico.
“If you put a 25% tariff on products coming from Mexico, you are going to have an increase in fuel, because we still refine a lot of Mexican products,” said Gonzalez. “You are going to have a direct impact on fruits and vegetables and beef and poultry.”
Kevin Peek, an economics professor at South Texas College, agrees with Gonzalez. He says it will be the border region, including the Rio Grande Valley, that will feel the tariffs the most.
The Pharr International Bridge is responsible for 65% of the country’s imported produce coming in from Mexico. The bridge also sees over $47 billion facilitated in annual trade.
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