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Valley produce leaders react to proposed tariffs

Valley produce leaders react to proposed tariffs
2 hours 16 minutes 18 seconds ago Wednesday, November 27 2024 Nov 27, 2024 November 27, 2024 10:19 PM November 27, 2024 in News - Local

The United States gets a lot of its food from Mexico that comes through international bridges, contributing to the Rio Grande Valley's economy.

Many Valley consumers try to shop cheaper by going to the McAllen Produce Terminal Market. One produce leader said he’s worried businesses like his will be impacted by proposed tariffs that would go into effect in 2025.

As the president of ISPE Produce, Isodoro Perez has fed Valley consumers at the McAllen Produce Terminal for 25 years. 

“Almost 100% of my products are from Mexico," Perez said. 

On Monday, President-Elect Donald Trump said he’d slap 25% tariffs on everything imported from Mexico and Canada as part of an effort to crack down on illegal immigration and drugs coming from both countries. 

READ MORE: Trump's threat to impose tariffs could raise prices for consumers, colliding with promise for relief

Perez says he'll have no choice but to raise his prices if the tariffs go through.

“We're going to pay the fee, but here in the U.S., the consumer is the one who's going to have to pay,” Perez said.

Abraham Arellanes regularly shops at the produce terminal to avoid markups on food prices. Arellanes said he doesn't see how the producers at the terminal can keep prices the same if the tariffs go through, and he worries what that could mean for the valley. 

“You're going to have to balance out one thing with another so it's going to affect the economy, and even moreso the Valley,” Arellanes said.

UTRGV economics professor Gautam Hazarika said he shares that concern

“We buy a lot of imported food here in the Valley,” this is definitely going to impact our food budget,” Hazarika said.

However, if done right, Hazarika said the tariffs could lead to some positive effects.

“It's like a tax revenue, and perhaps they can use that to help out Americans in some way,” Hazarika said.

Hazarika told Channel 5 News early estimates suggest the average American household could be losing about $1,500 a year if the tariffs go through.  

Other economists expect that number to reach as high as $2,600.

That impact could add up for families in Hidalgo County, where the poverty rate is nearly twice the state average.  

Watch the video above for the full story. 

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