Late Wednesday, the U.S. Court of International Trade ruled to strike down U.S. President Donald Trump's tariffs on most countries worldwide. A day later? The U.S. Court of Appeals for the Federal Circuit stayed the court order. So where does this leave the fast-moving world of produce shipping?
"It is too near-term to tell," says Jim Provost, founder, I Love Produce, who adds that should the tariffs indeed be eliminated, it won't have a great impact because it impacts all countries equally. "This fight has a long way to go."
Indeed, dVida's Annabell Vidal is also mindful of the fluid state of tariff decisions. "Since negotiations are still ongoing and the decision is not final, we have to take into consideration tariffs' effect on price as transit times for produce vary 7-25 days," she says.
Provost also adds that he believes in produce, tariffs are here to stay, one way or another. "Even if the Trump Administration loses this fight, they have other channels in which to implement tariffs," he says.
With tariff decisions in flux, it seems as though produce growers and shippers are approaching the subject cautiously. Following "Liberation Day" on April 2nd when the sweeping tariffs were announced, I Love Produce for example pivoted, only to find things changed again. "Lessons were learned. We are taking a "wait-and-see" approach this time around and going forward," says Provost.
What the rulings would mean
At Freska Produce International, Gary Clevenger, president, says the initial decision to block the ruling brings significant implications for its operations and the broader produce industry. "For us, this means a potential stabilization of import costs, allowing us to maintain competitive pricing for our customers," he says.
President Trump announced tariffs on April 2.
For Consalo Family Farms, should this ruling blocking the tariffs be upheld, it could eliminate the 10–30 percent tariffs currently applied to its summer citrus programs. "This would significantly reduce cost pressures on importers and provide much-needed relief to the fresh produce industry," says Casey Kio, EVP Global Business for Consalo Family Farms. "Importantly, citrus imports from Southern Hemisphere countries during the June to September window do not compete with domestic production, making this a strategic complement to the U.S. supply chain rather than a threat."
In turn, this would help stabilize pricing on these imports, ensure consistent supply for consumers, and support long-standing international trade relationships. "Overall, this decision would represent a step toward a more balanced trade policy and reinforces the importance of aligning tariff actions with seasonal and market realities," says Kio.
For now, what this fluctuating situation does is reintroduce a level of uncertainty regarding the long-term status of the tariffs. "Consequently, while we are cautiously optimistic, we remain vigilant and prepared to adapt to any future changes in trade policy," says Clevenger.
What the industry wants
Ultimately what Kio hopes for is a more nuanced approach to trade that would benefit all stakeholders. "The administration should consider the competitive dynamics between domestic and imported products—particularly the timing and regional availability of fresh produce—to ensure that any future tariffs are applied in a way that supports, rather than disrupts, the U.S. agricultural sector," says Kio.
In the meantime, should tariffs be removed, Clevenger says it would allow the company to revisit its pricing strategies. "However, transitioning back to pre-tariff pricing is not an instantaneous process. Factors such as existing inventory procured at higher costs, contractual obligations, and logistical considerations necessitate a measured approach. We are committed to working closely with our partners to ensure that any pricing adjustments are implemented thoughtfully and transparently," he says.
At dVida, Vidal says what is proving essential is to maintain detailed and accurate accounting records that clearly document the dates when tariff regulations are enacted and when customer orders are placed. "This allows us to align pricing structures appropriately, ensuring both compliance with regulatory changes and the fair, consistent application of costs throughout our supply chain," says Vidal. "In the produce industry, where margins are tight and timing is critical, even minor shifts in tariff policies can significantly impact pricing and procurement strategies."
Regardless, Kio says the implementation of the tariffs has significantly impacted its operations already. In addition to increasing its overall cost structure and reducing the availability of supply to the U.S. market, the tariffs have placed added strain on its working capital by requiring larger upfront payments before product sales are realized. "Furthermore, we've had to allocate additional resources and hire personnel to manage the complex processes, documentation, and compliance procedures associated with these new cost and payment structures," says Kio. "Reverting to pre-tariff pricing is also not as simple as flipping a switch--it requires careful recalibration of our pricing models, vendor agreements, and internal workflows to ensure alignment with the new trade landscape."
For further information:
Jim Provost
I Love Produce, LLC
www.iLoveProduce.com
Gary Clevenger
Freska Produce International, LLC
www.freskaproduce.com
Annabell Vidal
dVida
www.dvidaco.com
Casey Kio
Consalo Family Farms
www.consalofamilyfarms.com