Correction posted on 04/11 at 17:00EST

The Banana Association of North America (BANA) announced this week that the cost of bananas in America could rise by as much as $250 million a year under the 10% reciprocal tariff imposed on April 5 by the Trump administration.

Tom Stenzel, executive director of BANA, told FreshFruitPortal.com there are several reasons why tariffs on bananas don't make sense—starting with the fact that they cannot be commercially grown in the U.S. due to weather conditions.

Stenzel indicated that, overall, the banana industry in the U.S. is doing well. Bananas remain the country’s most-consumed fruit, with very high household penetration.

Due to the volume of bananas imported by the U.S., any percentage increase in tariffs will significantly raise prices for consumers. That’s why BANA immediately contacted members of the Trump administration to express concern about the industry impact.

"Even on the trade issues, the U.S. has a positive trade balance with all banana-exporting countries in Latin America, so it really doesn't make sense for these countries to be included," Stenzel said. 

Widespread uncertainty

Stenzel said that if prices increase and consumers buy fewer bananas, export volumes from Latin America may drop. However, there is no indication of that yet.

Regarding the possibility of an incentive for growers to shift more bananas to other markets like Europe, Stenzel said it’s too early to tell, and such a change wouldn't happen immediately. Regardless, “the real goal is not to have tariffs on bananas or any tropical fruit item that you can't grow in the U.S.,” he said.

Stenzel indicated he has not heard of any retailers raising the price of bananas in the U.S.

“We support the Trump Administration’s efforts to reduce regulatory burdens and ensure fair trade for American businesses. But we also urge the Administration to recognize the unique role of bananas and other tropical fruits and the frightening potential financial impact tariffs pose for U.S. consumers,” Stenzel added.

As markets and industries await the White House's next move, members of the banana industry hope they won’t have to deal with tariffs in the long run.

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