The fresh produce and food industry is at a pivotal moment. Amid ongoing debates over tariffs on imports and exports, the cost of bringing fresh fruits, vegetables, and related products throughout North America has skyrocketed overnight. These changes create ripple effects throughout the supply chain, impacting importers, distributors, retailers, and consumers.
New tariff legislation is poised to add another layer of complexity to the already intricate North American trade landscape. These proposals, aimed at recalibrating trade balances and bolstering domestic industries, could significantly impact the flow of goods, especially fresh produce, across the U.S.-Mexico-Canada borders. The potential implications include increased costs, logistical challenges, and shifts in sourcing strategies.
For decades, fresh produce from Mexico moved freely into the U.S. under NAFTA and, later, the USMCA agreement. With tariffs due within ten days of importation and limited exemptions, many importers – especially those with limited working capital – are struggling to absorb these costs. Compounding the issue, border delays and valuation disputes are increasing uncertainty. The result? A reduction in food industry related imports, higher consumer prices, and potential supply shortages.
Navigating the New Reality
In this challenging environment, companies must rethink their approach to supply chain management. “The food industry has never had to deal with tariffs of this magnitude,” said Sara Metzger, VP Product Management at iTradeNetwork. “For many importers, this isn’t just about higher costs; it’s about whether they can afford to bring in their usual volume of goods.”
One of the biggest challenges companies face today is accurate, real-time cost tracking – especially as tariff calculations have become a non-negotiable part of procurement strategy. Without proper tracking, businesses risk errors in import charge application, which can lead to overpayment or underpayment. “Companies can’t afford to wait – if you’re not tracking tariff exposure at the PO level today, you’re already behind,” Metzger said.
Adaptation Strategy: To ensure long-term success, businesses must abandon outdated methods and adopt automated solutions that eliminate errors and streamline compliance. For example, automating tariff application at the purchase order (PO) level ensures rates are correctly applied.
This process keeps operations clean and compliant, eliminating the need for employees to manually track these charges.
Auditability and Long-Term Risk
Another challenge is the lack of reliable audit trails. Tariffs are subject to post-entry reviews for up to 18 months, meaning businesses must maintain accurate, auditable records over a long period. Without centralized tracking, responding to government inquiries can become a costly scramble.
Adaptation Strategy: Adopt systems that automatically capture and preserve tariff data at the point of border crossing. Store documentation in a searchable, referenceable format to support customs reviews, vendor reconciliation, or internal audits.
Data-Driven Decision-Making
Beyond tracking, data-driven decision-making is now more critical than ever. The food industry operates on tight margins, making real-time cost visibility crucial. Without clear insight into when and how tariffs are applied, businesses risk surprise expenses that inflate margins or break budgets. This is especially true when tariffs are bundled with freight or hidden within other fees.
Adaptation Strategy: Integrate automated tools that deliver real-time landed cost visibility, to adjust sourcing and pricing strategies based on up-to-date tariff and cost information. This helps buyers and suppliers forecast total costs, evaluate vendor quotes and respond quickly to shifting cost structures.
Border Delays and Regulatory Ambiguity
Tariffs are only part of the equation. Border delays, valuation disputes, and inconsistent enforcement are adding layers of unpredictability to an already stressed system. Many importers are discovering that the costs of goods have risen – and shipments are delayed or held up entirely.
“The lack of clear guidance from regulators is creating significant uncertainty at the border,” Metzger said. “We strongly encourage companies to work closely with customs brokers and trade attorneys to explore potential exemptions and valuation strategies.”
Regulatory ambiguity – fueled by shifting rules and inconsistent communication – is adding further confusion at the ports of entry. This uncertainty makes it essential to implement systems that can track and store compliance data over time, ensuring that importers and suppliers can easily retrieve essential records when needed.
Adaptation Strategy: Businesses must maintain proactive communication with customs brokers, ensuring that documentation such as commercial invoices includes correct classifications and values. Systems should be in place to generate and share this data automatically.
How Technology Partners Can Help
While the responsibility for strategy and compliance lies with the business, technology partners are essential enablers of effective execution. By automating repetitive tasks, consolidating critical data, and creating visibility across stakeholders, the right technology can transform tariff management from a liability into a strategic advantage.
Platforms like iTradeNetwork are built to support these needs. We equip businesses with real-time insights to help them stay ahead. As Metzger put it, ‘In times of volatility, having access to real-time data is the difference between reacting to change and proactively planning for it.’”
iTradeNetwork’s Freight and OMS solutions are designed to streamline the management of tariffs by integrating automated systems that ensure accurate financial tracking. These solutions allow businesses to easily apply tariff-related costs at both the PO and line levels, keeping operations efficient and compliant.
With actionable tariff reporting, teams gain full visibility into tariff spend. The line-level tariff report shows exactly what’s being paid, which SKUs are affected, and who is responsible. This transparency enables faster decision-making and more effective reconciliation across procurement and finance.
The Landed Cost Analyzer integrates tariff data to help businesses forecast costs and adjust purchasing strategies with confidence. Additionally, an automated tariff application, built directly into OMS enables businesses to apply tariffs seamlessly, using country-of-origin codes. Keeping charges separate from freight costs allows for more precise tracking and financial management.
With these tools, iTradeNetwork provides a comprehensive solution to manage tariff complexities, streamline compliance, and maintain control over cost structures.
The Road Ahead
As tariffs reshape the industry, the winners will be those who adapt quickly. Agility is the key to navigating the uncertainties of shifting trade policies, changing tariffs, and evolving market demands. While some importers may shift sourcing strategies, others will restructure pricing models to pass costs downstream. Regardless of the approach, those who maintain flexibility and embrace innovation will be best positioned to thrive.
While uncertainty remains, one thing is clear: The food industry must embrace innovation and agility to thrive in this new era of global trade. Those who act now – investing in the right data, tools, and partnerships – will be best equipped to lead through change.
To explore how leading companies are navigating tariff challenges with the support of iTradeNetwork, visit www.itradenetwork.com.
The Food Institute Podcast
Tariffs, geopolitical tensions, and inflation are all weighing on the food and beverage industry and consumers alike, but what can industry leaders do to persevere amid uncertainty? Lou Biscotti from CBIZ’s Food and Beverages Services Group shares his insights on The Food Institute Podcast.
