As President Donald Trump's tariffs on imports from Mexico and Canada took effect, Philadelphia-based wholesaler John Vena found himself navigating new challenges. His business, John Vena Inc., relies on imports of Haas avocados, greenhouse bell peppers, and other specialty crops from Mexico, now subject to a 25% tariff.
Vena, a third-generation produce distributor, expressed a sense of powerlessness, stating, "We just have to go along with what's happening, and day by day we'll figure it out." The tariffs, part of a broader trade strategy targeting allies and competitors alike, have introduced uncertainty into the market.
In response, Vena engaged in webinars and stayed informed about the evolving trade landscape. As the trade conflict unfolds, financial markets have reacted, and industries such as retail and automotive have voiced concerns over potential price increases.
Despite the challenges, Vena's business, which began in 1919, has adapted over the decades. Initially focusing on local produce, the company expanded into specialty products, importing greenhouse-grown bell peppers from Holland and tomatoes from Israel. Trade with Mexico facilitated investments in greenhouse facilities, enhancing supply and leveraging favorable climate conditions.
Currently, Vena's operations at the 686,000-square-foot wholesale market in South Philadelphia involve repacking and ripening facilities for avocados and other products. However, tariffs have introduced new costs, with Vena noting, "We will probably be getting an invoice for tariffs."
While exploring alternative sources like Colombia and Peru, Vena acknowledges the challenges of replacing Mexican imports. "There's no immediate replacement for anything," he remarked, highlighting the reliance on Mexico for fresh produce.
Vena's situation underscores the complexities of the produce market, where supply and demand dictate pricing. "I can't sell anything here higher than the market," he explained, emphasizing the difficulty of passing costs onto customers.
Industry experts, like Jonathan Doh from Villanova University, suggest that the impact of tariffs will be shared across the supply chain. "We're all going to share in the pain," Doh noted, as the market adjusts to new pricing dynamics.
As Vena and others in the industry await potential exemptions for fresh produce, the immediate strategy involves reducing imports from Mexico and monitoring market trends. "If you have a shrinking supply, regardless of demand, eventually you're going to see higher prices," Vena concluded.
Source: The Philidelphia Inquirer
