How new tariffs impact avocado prices and trade between the US, Canada, and Mexico
Explore the impact of new tariffs on the price of Mexican avocados, trade uncertainty between the US, Mexico, and Canada, and how businesses are adjusting to the fluctuating taxes.
Importers and exporters across the United States, Canada, and Mexico are facing ongoing uncertainty due to fluctuating tariffs. These taxes have been changing rapidly, with recent events showing the unpredictability of trade between these countries.
Just last week, President Donald Trump imposed new tariffs on products from Mexico and Canada, followed by retaliatory measures from Canada. The situation continued to evolve, with Trump lifting some tariffs on specific items and delaying others. This rapid change left businesses and trade facilitators scrambling to adjust.
Tariffs' rising costs and the impact on consumers
At the Texas-Mexico border, many Mexican producers chose to hold back shipments in response to the new tariffs. This uncertainty led to less truck traffic as companies waited to see whether the tariffs would remain or change. Trade facilitators, like Jorge Torres from Interlink Trade Services, explained that the delay allowed businesses to plan their next steps more effectively.
These changes would affect everyone trying to buy groceries. Photo: Fast Company
The consequences of these tariffs extend beyond the trade industry. For example, the price of an average truckload of Mexican avocados could rise significantly due to the added 25% tariff. While a truckload of avocados typically costs between US$80,000 and US$100,000, tariffs could drive that cost up to US$125,000, leading to higher prices for American consumers.
Uncertainty for US businesses
Despite some tariffs being temporarily suspended, the lingering uncertainty remains a major concern for businesses. Arlington Mayor Jim Ross, representing a city with a General Motors plant, expressed concerns about how potential tariffs on automobiles and auto parts could impact jobs and the economy. The unpredictable nature of tariffs continues to pose significant challenges for industries and local economies alike.
