Onion and potato industries would be impacted differently by 25% tariffs that President Donald Trump plans to impose on Mexico and Canada, both major U.S. trading partners.

The administration on Feb. 3 paused the tariffs for a month, citing new commitments from the countries on border security and drug traffic.

The National Onion Association for years has raised concerns to U.S. Department of Commerce officials about imports from Mexico.

Therefore, “that would help our growers if there were a tariff,” said NOA executive vice president Greg Yielding.

Unfair trade practices and selling below the cost of production are among concerns the onion association has raised with the Commerce Department over onions that enter the U.S. from Mexico, Yielding said.

A bag of onions from the Mexican state of Chihuahua sells for substantially less than it costs a U.S. grower to produce the same volume, so “if the president puts a 25% tariff on onions coming from Mexico, that will definitely level the playing field for U.S. growers,” he said. Food safety also would improve.

Producers in Mexico gear up onion shipments into the U.S. this time of year, Yielding said.

If the Mexico tariff were imposed, “definitely there would have to be a shift from the norm where the onion market is concerned,” he said.

“We are a net importer of onions, so that’s not good for the industry,” Yielding said. If reduced imports create new opportunities for domestic product, “I’m sure the grower-shipper-packers can react to that.”

Price differential is less of a concern when it comes to onions that originate from Canada, he said.

But during Trump’s first term, “we had problems with Canada on trade,” Yielding said. Onions entering eastern U.S. markets initially did not meet grade or size standards. When USDA’s Animal and Plant Health Inspection Service fixed the problem, it helped because the improperly classified onions from Canada had been pushing prices higher, artificially.

Potatoes impacted

On the other hand, tariffs are keeping the potato processing industry and its growers on edge, Potato Growers of Washington executive director Dale Lathim said.

A quarter of all potatoes or potato products sold in the U.S. come from Canada, he said. And about one-third of the potato seed used in the Columbia River Basin of Washington and Oregon originates from Alberta — significant over the next 7-14 days as growers bring in supply for this year’s crop.

“Canada is a good partner,” Lathim said,

Potato processing is a North American industry centered near the U.S.-Canada border, an effective arrangement by which raw, fried and dehydrated products move effectively, he said. Many processors have facilities in both countries.

Processors have started to move inventories between U.S. and Canadian facilities to reduce impacts from tariffs and potential retaliatory actions, Lathim said.

“Everyone is trying to manage this as best as possible, but there’s no way you can manage it where it’s not going to have some impact on us,” he said.

Mexico is a big market for U.S. potatoes, another reason “this has gotten our attention,” Lathim said.

Mexico supplied 63% of U.S. vegetable imports in 2023, according to a USDA Economic Research Service study.