Tariffs on imported vegetables vary significantly by country and specific vegetable type, and are subject to change due to trade agreements and economic policies. Here's a breakdown of current and anticipated tariffs in key regions:
1. United States
- General Tariffs: The US has implemented new tariffs on imported fruits and vegetables, leading to price increases of 4% to 7% for consumers. These tariffs are part of a strategy to encourage domestic production.
- USMCA Exemptions: Many agricultural imports from Mexico and Canada are exempt from additional tariffs under the U.S.-Mexico-Canada Agreement (USMCA), covering about half of all produce imports. For goods that qualify under USMCA, fresh produce remains exempt.
- Tariffs on Non-USMCA Goods: Non-USMCA compliant goods from Canada and Mexico are subject to a 25% tariff, which was scheduled to increase to 35% and 30% respectively by August 1st.
- Specific Country Tariffs:
- Mexico: A 25% tariff was imposed on Mexican imports, including cucumbers, limes, tomatoes, and avocados, effective March 4, 2025. This could cause a 5% to 10% drop in tomato exports, a significant concern as Mexico is the leading source of imported fruits and vegetables for the U.S., accounting for $45 billion in 2023.
- China: A 10% tariff on U.S.-origin aquatic products, beef, dairy products, fruit, pork, sorghum, soybeans, and vegetables was effective March 10, 2025. China faces a 34% tariff on certain fruit and vegetable imports.
- Canada: The U.S. has imposed new tariffs on Canadian agricultural products, significantly impacting fruit and vegetable growers. Canada announced retaliatory tariffs of 25% on a list of U.S. goods worth $30 billion, effective March 4, 2025, which includes chilled or fresh tomatoes, and cucumbers.
- Other Countries: Guatemala, Chile, and Peru are subject to a 10% tariff on certain fruit and vegetable imports. The EU is currently facing a 10% tariff on food imports, scheduled to rise to 15% by August 1st.
- Impact: These tariffs are expected to drive up costs for both the fresh produce industry and consumers, leading to higher grocery prices and potential supply chain disruptions.
2. European Union
- General Tariffs: The tariff on fresh vegetables is generally 3%, but can be higher for specific products like onions (8.5%) and sweet potatoes (12.8%). Tariffs on frozen vegetables are typically 6%, with exceptions such as frozen sweet corn at 10.6%.
- Seasonal Tariffs: The EU uses tiered (seasonal) tariffs for many fruits and vegetables. For example, the tariff on fresh or chilled tomatoes varies from 8.8% (January-May, November-December) to 14.4% (May-October), plus a variable amount. Cauliflowers and headed broccoli also have seasonal tariffs, ranging from 9.6% to 13.6%.
- Additional Duties: The European Commission can apply additional import duties when import volumes for certain fruits and vegetables are particularly high, set at 125% of the average imports of each product over the previous three years.
- Preferential Agreements: Over 70% of EU fruit and vegetable imports come from countries with preferential trade agreements, which can result in varying tariffs and import restrictions.
- Proposed Changes: The European Commission plans to update procedures for setting standard import values for 15 fruits and vegetables, moving from daily to weekly calculations and clarifying conditions for additional import duties. These revised rules are intended to be adopted in the fourth quarter of 2025.
3. United Kingdom
- Tariffs from Non-EU Countries: Fruit and vegetables imported from non-EU countries are expected to see price increases due to stricter checks following the UK's alignment with EU food and drink regulations. For instance, the UK relies on Morocco for over a quarter of its tomato imports, particularly in winter.
- Tariffs from EU Countries: The UK government will scrap border checks on fruit and vegetables imported from the EU as part of a new sanitary and phytosanitary (SPS) deal, which aims to reduce costs and ease pressure on food prices. This exemption for medium-risk fruit and vegetables (including tomatoes, grapes, plums, cherries, peaches, peppers) imported from the EU has been extended until January 31, 2027.
- Suspension of Tariffs: The UK government has temporarily suspended import tariffs on 89 products, including some food and drink items, until July 2027, to support food manufacturers and lower costs for consumers.
- Specific Examples (non-preferential rates):
- Fresh or chilled onions (other than sets): 8.0%.
- Fresh or chilled cauliflowers and headed broccoli: 8.0%.
- Fresh or chilled lettuce (excluding cabbage lettuce): 10.0%.
- Fresh or chilled tomatoes: 8.0% (November-May), 14.0% (May-October).
4. Canada
- Retaliatory Tariffs: In response to U.S. tariffs, Canada announced 25% tariffs on a list of U.S. goods, including cucumbers and various fruits, effective March 4, 2025. An additional list of goods is under consideration for tariffs if the U.S. continues to apply tariffs on Canada.
- Impact on Growers: Canadian fruit and vegetable growers are bracing for the impact of U.S. tariffs, with concerns about increased costs and market uncertainty. The Fruit and Vegetable Growers of Canada (FVGC) reported that greenhouse growers in Ontario alone lost $2.2 million a day in sales from March 4-7 due to U.S. tariffs. Over 99% of Canadian-grown greenhouse vegetables are exported, and tariffs could make them uncompetitive in the U.S. market, leading to widespread financial devastation for growers.
It is important to note that tariff policies are dynamic and can change frequently due to ongoing negotiations and evolving trade relations.
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