Trump’s trade policies spark uncertainty for Illinois produce distributors and farmers, as tariffs drive up costs, disrupt imports, and strain supply chains
President Donald Trump’s tariff policies, aimed at revitalizing domestic manufacturing, are creating ripple effects across the food supply chain in Illinois and beyond, as fresh produce businesses grapple with rising costs, disrupted logistics, and planning uncertainty.
The impact is particularly evident in sectors that rely heavily on imported perishables goods that, unlike manufactured products, cannot simply be reshored or stored long-term due to their climatic needs and limited shelf life.
For companies like Testa Produce, a major Chicago-based distributor serving clients across Illinois, Wisconsin, and Indiana, the implications are clear and costly.
The company sources a wide array of fruits such as bananas, pineapples, and mangoes products that require specific growing conditions not found in the U.S. year-round.
As Peter Testa, CEO of Testa Produce, explained, these supply chains are deeply reliant on consistent imports, often from countries like Costa Rica and Ecuador, which are now subject to new tariff rules.
Although the U.S.-Mexico-Canada Agreement provides some tariff exemptions for regional trade, the broader global tariff policy introduced by Trump in April has had immediate consequences.
While the administration implemented a 90-day pause on some of these new tariffs, a 10% duty still applies to many imports, with the possibility of steeper rates following the pause.
This has left food distributors and buyers facing confusion and forced to make adjustments to procurement strategies under unclear conditions.
Fresh Produce Association, the nature of the produce industry with its seasonal cycles, perishability, and geographic dependencies makes it uniquely vulnerable to such policy shifts.
The association pointed out that tariffs disrupt markets and increase consumer costs, adding further financial strain on growers and producers while complicating long-term business planning.
U.S. Rep. Raja Krishnamoorthi, who has met with numerous Illinois-based food businesses during the tariff rollout, noted the broader implications for everyday consumers.
The consequences also extend to the domestic agricultural sector.
Illinois, one of the country’s largest exporters of soybeans, has seen pricing instability due to retaliatory tariffs from international trading partners.
Ron Kindred of Kindred Farms highlighted the strain placed on farmers by these countermeasures, particularly in light of the global competitiveness challenges already facing U.S. agriculture.
The American Farm Bureau Federation reinforced this view, emphasizing that rural communities and farming operations often bear the brunt of such trade disputes.
Even as the U.S. and China agree to a temporary truce in their ongoing trade conflict, many in the agricultural and food industries remain cautious.
The International Fresh Produce Association called the 90-day pause “a positive step toward stability,” but warned that the damage to market relationships and lost shelf space may not be easily reversed.
Reestablishing supply chains and restoring confidence among trade partners could take significant time, effort, and policy coordination.
For Illinois food businesses and farmers alike, the long-term implications of the current tariff strategy remain uncertain.
