The fresh produce sector, in particular, is feeling the effects, with fewer transactions reported during the brief period the tariffs were initially set to take effect.
César Rafael Ocaña, director of the Nexus Agriculture Business Council in Mexico, expressed concern over the long-term impact if the tariffs remain in place.
He stated that a prolonged tariff situation could trigger a recession in Mexico's agricultural industry, which heavily relies on U.S. exports.
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“The uncertainty created by the Trump Administration is not only straining trade relations but also jeopardizing our businesses,” said Ocaña. “This is a double blow to regions that depend on agricultural exports for their livelihood.”
Mexico's $55 billion annual exports to the U.S. are at risk, with Ocaña predicting significant reductions in exports of products such as tequila, beef, and beer.
“If tariffs stay, they will plunge the economy into a recession, particularly in rural areas, exacerbating existing issues like water shortages and fewer grain imports.”
The agricultural community, already grappling with drought and resource scarcity, faces even more uncertainty as it braces for the potential fallout from extended tariffs.
Ocaña warns of long-lasting effects that could cripple Mexico's economy for years to come.
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