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Vendors dealing with rising costs, shrinking profit margins

News 4 Jax checked several major grocery stores and couldn’t find a single mango still selling at last year’s price.

The price squeeze is being felt across the board, especially for popular Mexican imports like tomatoes, avocados, and peppers. Tomatoes face a 17.09% tariff — to take effect July 14.

“Everything that comes from Mexico,” Saldana said, “I have to increase the price for the customer.”

The administration says the tariffs will stay in place until illegal crossings and drug trafficking from Mexico are “fully stopped.”

For vendors like Saldana that means navigating rising costs and shrinking profit margins. It’s a squeeze that small and mid-sized businesses, already operating on thin margins, aren’t built to absorb.

There’s a glimmer of hope on the local level.

Mitch James, Assistant General Manager at Jacksonville’s Farmers Market, says local farms are helping shield consumers from the full brunt of inflation.

“We’ve got about five or six (growers) that come from west of Jacksonville, predominantly going out towards Live Oak, that bring in cabbage, greens, broccoli, peppers — all the above,” James said.

“That’s the good thing that keeps the fuel cost down, which keeps the wholesale and retail price down.”

That’s welcome news for families stretching every dollar to put food on the table. But with the growing season ahead and tariffs showing no signs of easing, one thing is clear: Your produce may keep getting pricier before things get better.

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Raise prices or take the hit?

Vendors operating on razor-thin margins are now faced with a tough choice.

Do they hike prices and risk driving away budget-conscious customers? Or absorb the costs and watch their profits disappear?

For small business owners like Luis Saldana, that’s a lose-lose scenario. Analysts warn the tariffs could fuel inflation and limit variety in stores, making fresh produce even less accessible. And it's not just the produce aisles feeling the pressure.

Smaller vendors, especially in Florida, could be pushed to the brink.

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Jessica Wong Freelance Contributor

Jessica Wong is a freelance writer with a background in economic development and business consulting, she enjoys writing about topics that help people learn more about personal finance.

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