Tariffs concern industrial and banana trees, despite the pause • Economics and Finance • Forbes Mexico

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Tapachula.- Banana producers and the National Chamber of the Transformation Industry (Canacintra) on the southern border of Mexico expressed concern because they perceive that the threat of 25% tariffs of President Donald Trump is still valid.

Nicolás Castañeda Javier, president of the Canacintra in Tapachula, the largest city in the limit of Mexico with Central America, explained that the concern does not disappear because 80% of exports to the United States are from the agricultural and manufacturing sector.

Although he acknowledged that at the moment the measures are stopped after the promise on Monday of President Claudia Sheinbaum to send 10,000 National Guard agents to the border with the United States, warned that, if completed, they will affect the income.

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The business leader in Tapachula indicated that this break gives them “a respite”, but there is still concern about the increase in raw materials for a possible commercial war.

“Production costs are going to be very high before these measures they intend to take,” he said.

In the case of Chiapas, he indicated that they analyze the development poles that the government intends to develop.

In addition, he valued that this is “a more strategist government, Dr. Claudia Sheinbaum, is a professional woman, with an international discourse and, without a doubt, has made these measures controlled in a month in what Mexico operates this plan.”

The president of the Soconusco Plataneros Association, Eduardo Altuzar López, added that the situation is worrying for exporters because for each banana box it is an average increase of 2.2 dollars.

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This, he warned, would reduce the profits and force them to renegotiate contracts with transnational companies.

Even so, he asked for a “vote of trust” for the “president” about “that this issue will solve it so that this 25% take it from tariffs on Mexican fruits.”

“The affectation at the end of the day is an inflation that will paste at 25%, the box has a cost, all costs of safety, hand of works, supplies, nutrition. Increasing an additional cost to the Caja makes us not very competitive between Mexico and Central America, ”he said.

The leader of the largest group of Bananeros of the South Frontera said they are looking for alternatives, such as exporting to Japan.

Currently, he said, they are exporting 130 weekly containers to the United States.

The tariffs, which were going to begin on Tuesday, worry Mexico for being the largest commercial partner of the US, with a value of exports to that country of 490,183 million dollars in 2023, almost 30% of Mexican GDP, according to a report of the Mexican Institute of Competitiveness (IMCO).

With EFE information

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