Mexican sugar exports to US could be halted by tariff imposition, Czarnikow says

Supply chain services brokerage and service provider Czarnikow warned in a report released Thursday that Mexican sugar exports to the United States could be disrupted if the new Donald Trump administration implements a 25% tariff on Mexican sugar. The US president-elect has pledged to impose the tariff on both Mexico and Canada unless those countries change their trade policies in areas such as pharmaceuticals and illegal immigration control. According to Czarnikow’s chief analyst, Stephen Geldart, the imposition of the tariff would likely result in the suspension of Mexican sugar exports to the US market. The United States currently imports approximately one-third of its sugar, and Mexico is the largest supplier, benefiting from a duty-free quota under the United States-Mexico-Canada Agreement (USMCA). Geldart noted that a 25 percent tariff would make it impossible to export Mexican sugar to the United States, although many North American sugar market participants doubt that ...