Banana prices may spike by US$250M due to new tariffs, warns industry group
Consumers likely to pay more for bananas as new trade measures come into effect.
NORTH AMERICA – The Banana Association of North America (BANA) has warned that a new 10 percent tariff could cause banana prices in the United States to rise by as much as US$250 million annually.
The tariff, which took effect on April 5 under the Trump Administration’s reciprocal trade measures, is already raising concern among importers, retailers, and shoppers.
While the tariff is meant to support U.S. trade interests, the banana industry says the move will mostly hurt American consumers.
Although the goal of the tariffs is to encourage more local production, experts point out that bananas don’t grow well in the U.S. climate. Most of the fruit is imported from Latin America.
According to the U.S. Department of Agriculture, the U.S. brought in more than $2.5 billion worth of fresh bananas in 2024 to meet domestic demand.
“Clearly, American consumers will suffer higher prices from tariffs on bananas, without producing significant economic benefits for the U.S.,” said Tom Stenzel, executive director of BANA.
“Our balance of trade with banana-producing countries is already positive, and there is no potential to meaningfully drive U.S. banana production in the U.S. given the climate in which bananas grow.”
Stenzel also noted that more than 90 percent of bananas sold in the U.S. come from just five countries—Colombia, Costa Rica, Ecuador, Guatemala, and Honduras.
All five are now subject to the 10 percent tariff. Yet, U.S. Census Bureau data shows the U.S. exports US$4.7 billion more to these countries than it imports from them.
Little gain, big costs for shoppers
BANA says that with the trade balance already in America’s favor and no chance of growing bananas locally at scale, the tariffs fail to meet their goals. Instead, the result will be higher grocery bills for American families buying both organic and conventional bananas.
“We support the Trump Administration’s efforts to reduce regulatory burdens and ensure fair trade for American businesses,” said Stenzel.
“However, we also urge the Administration to recognize the unique role of bananas and other tropical fruits, and the frightening financial impact that these tariffs pose for U.S. consumers.”
Adding to the cost pressure, the industry is facing ongoing issues at major shipping routes. BANA recently highlighted the Panama Canal delays as another major concern, especially with the dry season extending longer than expected.
Ships carrying bananas are often rerouted, leading to longer delivery times and higher freight charges. This, combined with the new tariffs, could make 2025 one of the most expensive years for banana imports in recent history.
As policy discussions continue, industry leaders hope the government will take into account the unique challenges faced by the fruit supply chain—and act to protect the American consumer.
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