Proposed tariffs on Mexican imports by the US could significantly impact avocado prices in the US. Experts predict a rise in avocado costs due to the 25% tariff on Mexican goods, although the exact magnitude remains uncertain. The impact could be absorbed by producers and importers to maintain competitiveness, or consumers might face higher prices, especially with the Super Bowl approaching, a major guacamole-consuming event.
Avocados grow on trees in an orchard in the municipality of Ario de Rosales, Michoacan state, Mexico, on Sept. 21, 2023. Tariffs on Mexican imports would have a big effect on avocados in the U.S.Trump has said he plans to impose a blanket tariff of 25% on imports from Mexico and Canada, along with an additional 10% tax on goods from China.
'Broad tariffs, like what's being proposed, is not something that we've seen' before, says David Ortega, a food economist and professor at Michigan State University.'We had the trade war with China back in 2018 that affected steel and aluminum, but when it comes to food, these types of policy proposals are not something that are very common or that we've seen recently.' With one of the biggest guacamole-eating events of the year — the Super Bowl — approaching in February, here's what to know about avocados, tariffs, and why so many avocados are grown in Mexico.Avocados are displayed in a grocery store in Washington, D.C., on June 14, 2022. Experts predict avocado prices will rise in the event of tariffs on Mexican imports.But estimating just how much higher is hard to say. It's possible that producers and importers will absorb some of the costs to keep prices down and stay more competitive. Ortega says there could be'pretty significant increases in the price of avocados. Maybe not the full 25%, but pretty close, given that there's very little substitute ability with regards to where we would source avocados.' But he cautions that because the tariffs apply only to the product's value at the border, and not to other costs like transportation and distribution within the U.S., prices may not go up by the full 25%. Regardless of these potential price increases, however, people in the U.S. love their avocados and they're willing to pay more. Avocado consumption tripled in the U.S
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