The United States imports approximately 60% of its fresh fruit and 40% of its fresh vegetables, with Mexico being the largest contributor. If President-elect Donald Trump imposes a 25% tariff on items from Mexico, U.S. consumers could see higher prices on a variety of grocery and produce items. Mexico is the leading foreign supplier of tomatoes, avocados, raspberries, bell peppers, strawberries, and beer to the U.S. due to lower labor costs and more favorable seasonality. Economists predict that importing companies in the U.S. would bear the cost of tariffs and potentially pass them on to consumers, leading to inflation. Trump’s proposed tariffs on Canadian and Chinese imports could further exacerbate this issue. Despite some analysts believing Trump’s tariffs are a negotiating tactic rather than a definite plan, retailers like Walmart are preparing for potential price increases for customers. John David Rainey, Walmart’s chief financial officer, stated that while they aim for everyday low prices, there may be cases where prices will rise for consumers due to external factors such as tariffs.
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