SAN DIEGO (Border Report) — Growers in Mexico reported fewer orders during the brief implementation of 25% tariffs on Mexican products.
According to César Rafael Ocaña, director of the Nexus Agriculture Business Council in Mexico, the fresh produce industry in Mexico expects a recession if the tariffs were to remain for an extended period of time.
On Thursday morning, President Trump postponed 25% tariffs on products made, manufactured or grown in Mexico. He had set them in place on March 4.
“The uncertainty generated by Donald Trump’s Administration is not only affecting the commercial relationship with Mexico, but it’s also putting our businesses in jeopardy,” said Ocaña. “This creates a double impact on many agricultural regions that depend on this financial help.”
He believes the tariffs will stifle the $55 billion in annual exports to the U.S.
“Tariffs will create a recession and deliver a powerful blow to our economy.”
Ocaña also predicts fewer tequila, beef and beer exports from Mexico to the United States.
“This could turn into a crisis for the Mexican economy with a magnitude never seen before, we’re already facing issues with the lack of water due to severe drought and fewer grain imports, the tariffs will have a profound impact that will lead to a recession in rural areas that will last for many years.”
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