Feek Family Citrus, a citrus grower and packing operation in St. Lucie County, Florida, is among local producers observing the effects of evolving trade policies. The recent postponement of proposed U.S. tariffs on imports from Mexico and Canada has elicited varied reactions from Florida's citrus sector, which faces growing competition from Mexican imports.
Citrus grower Doug Feek, managing a 1,300-acre grove, noted that while some industries feared the tariffs, Florida's citrus sector might have seen benefits. Feek explained that Mexican fruit competes directly with Florida-grown oranges, impacting market demand. He anticipated that restricting imports from Mexico could have driven up demand and improved returns for domestic growers. Although not disappointed by the tariff delay, he acknowledged that trade restrictions might have had a positive effect on local producers.
According to Dan Richey, a citrus farmer and U.S. trade representative on the Agricultural Trade Advisory Committee, tariffs between the U.S. and Mexico would not have been a major concern for many Florida citrus growers. Richey argued that Mexican oranges undercut the domestic market by offering lower-cost alternatives. Additionally, Mexican labor costs are significantly lower, creating further challenges for Florida growers. However, he noted that domestic orange juice companies have increasingly relied on Mexican imports due to citrus greening, a disease that has severely affected Florida's orange production in recent years.
While tariffs on Mexican citrus might have provided some relief for Florida growers, trade restrictions on Canada could have had the opposite effect. In 2022, the U.S. exported 25.8 million gallons of orange juice to Canada, valued at $124.2 million. Florida accounted for 60% of this total, making Canada a vital market for the state's citrus industry. Retaliatory tariffs from Canada could have reduced demand for Florida orange juice.
Economists analyzing previous trade conflicts, such as the 2018 U.S.-China trade war, found that tariffs often result in higher consumer prices. A study by the National Bureau of Economic Research reported that tariffs on imports were fully passed on to consumers, adding $51 billion in costs during 2018 alone. The burden of tariffs is typically felt most by low-income consumers and farmers, who face higher input costs and decreased export competitiveness.
Although the latest tariff dispute between the U.S., Mexico, and Canada has been temporarily resolved, some damage may have already occurred. Richey noted that uncertainty alone can have a lasting impact on consumer behavior. Reports from citrus exporters suggest that Canadian buyers have begun avoiding U.S. products, reflecting concerns about potential trade disruptions. Even without direct tariffs, fear of instability in the market may influence purchasing decisions.
With trade negotiations ongoing, Florida citrus growers continue to navigate a complex economic landscape. While restrictions on Mexican imports could offer some relief, potential trade barriers with Canada remain a concern. The industry faces continued uncertainty as policy decisions shape the future of citrus exports and international trade.
Source: TC Palm
