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The Trump tariffs on Mexico and Canada are scheduled to be back on for now, but that could change any day. We also look into the strategy behind BrightFarms planned greenhouse closures and look forward to next week’s SEPC Southern Exposure.
Trump tariffs
There’s a saying about President Trump: take him seriously, but not literally.
His supporters say he exaggerates as a way to negotiate. His opponents say he’s a bully and a liar. With regard to tariffs on Canada and Mexico, his aim is to secure both borders and reduce drug smuggling into the United States. He paused the 25 percent tariffs a month ago, but said Thursday morning they will go into effect on March 4, next Tuesday.
Trump still has time to negotiate, and Mexican president Claudia Sheinbaum said in a news conference Thursday she’s still optimistic some agreement can be reached.
Tariffs on fruits and vegetables would be more bad than good for business and consumers. They will certainly raise prices. Some domestic producers will benefit, but the whole reason we import fruits and vegetables is to fill demand that we can’t fill domestically.
Avocados, for instance, are produced in California and Florida, but they don’t come close to meeting consumer demand. Mexico has filled that gap and grown consumption enormously. California still sells its product at a premium and often doesn’t even ship east of the Rocky Mountains because Western consumers will pay a premium for them.
It’s time for the new Secretary of Agriculture Brooke Rollins to show what kind of influence she has in the administration to look out for consumers when it comes to relief from food inflation.
If the tariffs go into effect, Agtools users can try the company’s new tariff calculator to compare prices and test scenarios that will affect supply, merchandising, and pricing.
BrightFarms strategy
Local news reports said indoor greens grower BrightFarms plans to close its Selinsgrove, PA greenhouse, and the company acknowledged it, saying it plans to suspend operations at its Rochelle, IL and Hendersonville, NC greenhouses later this year.
But it’s not all bad news, as BrightFarms said it plans to concentrate more on its three larger state-of-the-art greenhouses which opened last year in Yorkville, IL, Lorena, TX, and Macon, GA. The company says these greenhouses produce four times the volume and will be the foundation for future growth.
SEPC Southern Exposure
Next week brings the first big event of the 2025 produce calendar, as the Southeastern Produce Council holds its annual Southern Exposure conference and expo March 6-8 in Orlando, FL. The Produce Reporter will have weekly special edition newsletters with news about the show and will be onsite with coverage. You can follow all the news on the event by using the Southern Exposure tag.
Many companies have sent us their plans, including new products and services, and we expect to report on many more up to, during, and after Southern Exposure.