Updates: Policy/News/Markets, March 21, 2025
— Tariffs would deepen U.S./Mexico sugar trade woes. The US is set to import the least amount of sugar from Mexico since 2008 as droughts and impending tariffs disrupt trade, Bloomberg reports (link). A proposed 25% duty under the North American trade agreement has already stalled future shipments, pushing U.S. buyers toward higher-taxed imports from other countries like Brazil. Once Mexico’s top sugar buyer, the U.S. is now sourcing more from alternative markets as supply constraints and trade barriers make Mexican sugar less competitive. While U.S. officials insist domestic supply remains stable, industry leaders warn that tariffs could further inflate costs and strain the long-standing trade relationship.