The recent confusion over the 25% tariff on Mexican agricultural products has generated concern and chaos in the export sector, particularly in the avocado industry.
"Avocado has never paid tariffs since the beginning of the Free Trade Agreement in 1994 and remains protected thanks to the renewal of the USMCA (US-Mexico-Canada Agreement) in 2020. That hasn't changed. However, the avocado sector is closely watching the upcoming renegotiation of the treaty in 2026, as there are signs that the US government could seek to bring it forward to 2025 to establish new trade conditions," stated Manuel Cerda, president of the Association of Avocado Producers and Exporters of the State of Mexico (Apeamex).
Even though avocados are exempt from tariffs, the uncertainty generated by the announcements on border taxes caused a sharp drop in shipments to the United States.
"The initial announcement of the tariffs caused so much fear that the main importing companies, such as Mission and Westpak, completely stopped their avocado shipments and cuts. The situation generated a logistical collapse at the border, where avocado shipments decreased by up to 90%, affecting the operation of customs agents and transporters," Cerda said.
In addition, some exporters who did pay the 25% tariff before the measure was suspended are now demanding a refund. "Many shipments that crossed the border during the days of uncertainty did so with the 25% tariff. Now they are looking for legal mechanisms to recover those payments, since the US changed its decision to apply those tariffs shortly after," Cerda added.
Faced with this scenario, avocado exporters are looking to reduce their dependence on the US market. "For years we have left other markets in the hands of countries such as Peru and Colombia, but now it's time to recover them," the president of Apeamex stated. Among the strategic destinations, he mentioned Europe, Japan, South Korea, the United Arab Emirates, and Canada.
Currently, 91% of the avocado consumed in the US comes from Mexico, which means that any trade restrictions would have a strong impact on both economies. However, the Mexican avocado industry is focused on strengthening its presence in new markets.
Apeamex is also engaged in talks with Mexican and US authorities to ensure that avocados remain tariff-free. According to Cerda, the association has hired a law firm in the US to defend the sector's interests and seek the return of the undue payments.
"Exporters cannot afford a situation where every political change puts trade at risk. We've had free access to the US for 30 years and it is not fair that from one month to the next they want to change the rules of the game. We are acting legally to protect our interests," he said.
Mexico's government remains in a cautious position, awaiting further statements from the US before retaliating on trade, similar to Canada's response in previous tariff disputes.
"It's a daily uncertainty. One day we are told one thing and the next they change everything. For now, we are using this month to strengthen relationships with customers in other countries and be prepared for any scenario," Cerda concluded.
For more information:
Manuel Cerda
Apeamex
Mexico
Tel: +52 452 526 1156
Email: contacto@apeamex.com
www.apeamex.mx