March 3

3/3 – Here we go again. Barring a reprieve today, 25% tariffs on imports from Mexico and Canada will go into effect on March 4 (tomorrow). Trump cited ongoing concerns about the influx of illegal drugs, particularly fentanyl. Both Canada and Mexico are expected to respond with retaliatory measures. In addition, a 10% tariff on Chinese imports will also take effect on March 4, in addition to the 10% tariff imposed on Chinese goods last month. The most immediate effect on the restaurant industry, particularly at this time of year, will be on fruits and vegetables. The U.S. imported an estimated $22B+ in produce from Mexico last year. Tomatoes, avocados, cucumbers (pickles), jalapenos, bell peppers, and limes could present some of the biggest immediate cost issues. Proteins are more complicated. Retaliatory tariffs could negate some of the price effects of fewer Mexican cattle and Canadian pig imports by reducing U.S pork and beef exports.