DFNet

March 13, 2025 | Fresh Fruit Portal |

The U.S. avocado market faces uncertainty following the announcement of potential tariffs on Mexican avocados. Although Mexican avocados have enjoyed tariff-free access since 1994 under NAFTA and later the USMCA, the recent proposal for a 25% tariff caused significant disruptions. Major importers halted shipments, leading to a 90% drop in avocado crossings at the U.S.-Mexico border. Some exporters who paid the temporary tariffs are now seeking refunds after the decision was reversed.

Mexico supplies 91% of avocados consumed in the U.S., making this trade relationship critical. Concerns are growing over a possible early renegotiation of the USMCA in 2025, ahead of the scheduled 2026 review, which may introduce new trade terms.

In response, Mexican exporters are diversifying, targeting markets in Europe, Asia, and the Middle East to reduce dependency on the U.S. They are also working with legal advisors to challenge potential unfair trade practices and safeguard free access to their primary export market.

Despite the challenges, Mexico and the U.S. remain deeply connected in avocado trade, and the industry is preparing for various scenarios to protect its long-standing relationship and market stability.

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