Importers Say Retailers May Keep Banana Prices High Despite Lower Tariffs

U.S. produce importers told FreshPlaza that the recent rollback of tariffs on bananas and other agricultural imports may not lead to lower consumer prices, despite President Donald Trump's announcement that new trade deals with Guatemala, El Salvador, Ecuador, and Argentina would reduce costs on several produce items.

In interviews with the outlet, importers said many retailers had already raised banana prices this year and are unlikely to reverse course even as their own import costs decline.

"A lot of retailers had already upped their price for bananas all over the country," said Andy Thomas-Stivalet of Kavidac Produce to FreshPlaza. "It's very unlikely that they'll lower the price, even if now they're paying 10 or 15 percent less for bananas."

Thomas-Stivalet added that the tariff rollback creates mixed consequences for sourcing. While his company brings in fruit from Guatemala, it also sources heavily from Mexico. He said they intentionally did not raise prices earlier in the year because they anticipated policy changes, adding that the tariff cuts apply only to select origins; major exporters like Costa Rica, Colombia, and Honduras were not included.

"My gut says no and that the price increase is here to stay and who is going to get that money is the stores," he said.

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Importers also told FreshPlaza that the policy shift may benefit growers more than retailers. Thomas-Stivalet noted that Guatemalan suppliers, who had been pressured to seek markets outside the U.S., may regain competitiveness. "For Guatemala it's very good because their natural market is the U.S.," he said, while adding that Ecuadorian exporters have become more diversified in Europe and Asia.

Tariffs had also been affecting commodities beyond bananas. As Forbes reports, coffee prices surged more than 40 percent year-over-year after the administration imposed broad duties on imports earlier this year. Coffee production is limited to the world's tropical "Coffee Belt," meaning the U.S. cannot produce the crop at any meaningful scale.

Because only Hawaii grows coffee domestically—and at less than 1 percent of global output—tariffs inevitably pushed up U.S. prices, contributing to broader cost pressures in the food supply chain.

The rollback therefore includes not only bananas but a long list of agricultural items the U.S. cannot grow, such as coffee, cocoa, tea, vanilla beans, and tropical fruits. The exemptions were intended to ease price spikes and restore supply stability across categories heavily reliant on imports.

Daniella Velazquez De Leon of Organics Unlimited told FreshPlaza that tariff pressure had already pushed growers to explore alternative export routes, tightening supply in the U.S. market. She warned that even with tariff relief, structural costs will continue to affect prices. "Banana supply remains tight and it's expected to continue into next year," she said, citing colder weather in Ecuador and ongoing TR4 risks.

Thomas-Stivalet also noted that the tariff reversal arrives mid-contract season. "Contracts are kind of finalized, but they hadn't been finalized. So that might shake things up," he said.

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