The fresh produce industry was thrown into turmoil over the weekend as a rapid series of policy shifts left importers, growers, and trade experts scrambling for answers.

What started as a definitive statement from the White House imposing a 25% tariff on imports from Mexico and Canada quickly turned into a dizzying back-and-forth of negotiations, suspensions, and retaliatory measures.

Tariffs Announced

President Donald Trump signed an executive order declaring a national economic emergency under the International Emergency Economic Powers Act (IEEPA).

This order imposed immediate tariffs of 25% on all imports from Mexico and Canada and 10% on goods from China.

The move, according to the White House, was a response to ongoing trade imbalances and the influx of illegal fentanyl into the U.S.

For the fresh produce industry, the announcement sent shockwaves through supply chains.

Importers, many of whom had already placed shipments to the U.S., suddenly faced the possibility of a massive financial hit.

The lack of clear implementation details only added to the confusion.

Would the tariffs apply retroactively to goods already in transit? Would fresh produce receive any exemptions?

By Saturday morning, trade organizations, importers, and customs brokers were in full crisis mode, seeking clarification from government agencies.

The Texas International Produce Association (TIPA) issued an urgent update to members, advising them to prepare for compliance but cautioning that no official Federal Register notice had yet been published.

This meant that, while the executive order was signed, its implementation remained uncertain.

Meanwhile, Canada and Mexico were already formulating responses.

The Canadian government announced a list of retaliatory tariffs, including 25% duties on a range of U.S. agricultural products such as tomatoes, citrus fruits, beans, peaches, and melons.

Mexico, on the other hand, remained silent, raising speculation that behind-the-scenes negotiations were underway to reach an agreement before the tariffs took effect.

Mexico Strikes a Deal, Canada Holds Firm

Late Sunday evening, after a series of calls between President Trump and Mexican President Claudia Sheinbaum, the White House announced that the 25% tariffs on Mexico would be suspended for one month.

As part of the agreement, Mexico pledged to deploy 10,000 members of its National Guard to its northern border to curb drug trafficking, particularly fentanyl smuggling.

The abrupt change left the produce industry reeling.

Canada, however, did not receive the same reprieve.

Prime Minister Justin Trudeau spoke with Trump twice over the weekend, but the talks did not yield any immediate suspension of tariffs.

In response, Canada’s retaliatory tariffs on U.S. produce remained in place, raising concerns for American farmers who export fresh fruits and vegetables northward.

Monday Morning Fallout: What Now?

As Monday morning arrived, the fresh produce industry was left in a state of limbo.

While the temporary suspension for Mexico was welcome news, the industry still faced significant uncertainty:

• Will the Mexico tariffs return on March 4? Without clear benchmarks for what Mexico must do to avoid the reinstatement of tariffs, businesses are left in a guessing game.
• How will Canada respond? With tariffs still set to go into effect against Canadian imports, U.S. producers are bracing for potential export losses.
• Will fresh produce receive exemptions? No official guidance has clarified whether perishable agricultural products will be subject to the tariffs long-term.

Trade organizations are urging businesses to remain cautious.

The Cost of Uncertainty

Even with the temporary suspension, the damage may already be done.

The fresh produce market operates on tight margins, and the mere threat of tariffs has already caused price fluctuations.

Importers who stockpiled inventory in anticipation of higher costs may now find themselves holding excess supply.

Retailers, wary of sudden price hikes, may hesitate to commit to long-term purchasing agreements.

What’s Next? The March 4 Deadline

As negotiations continue behind closed doors, industry stakeholders are anxiously awaiting the next move.

If Mexico fulfills its commitments, tariffs may remain suspended, but the lack of concrete metrics makes it unclear what constitutes compliance in the eyes of the Trump administration.

For Canada, much will depend on whether Trudeau can broker a deal similar to Mexico’s.

With retaliatory tariffs in place, U.S. exporters are pushing for diplomatic resolutions to avoid further economic harm.

In the meantime, the produce industry must remain agile, adapting to sudden shifts in policy while advocating for stability in international trade.

If this weekend’s chaos proved anything, it’s that when it comes to tariffs, nothing is certain until the ink is dry, and sometimes, not even then.