California Farmers Seek Tariffs on Mexican Avocado Imports
Farmers in California are urging the Trump administration to implement “substantial” seasonal tariffs on avocado imports from Mexico, citing concerns about the industry’s viability.
Andy Shafer, who owns Vista Punta Gorda Farms in Ventura, California, expressed his worries: “If the trends keep going like this, we’ll have some tough conversations ahead.”
The volatility in the avocado market is troubling, he added. “When that kind of volatility leads to negative returns, it’s hard to manage.” Having been in the farming business for 20 years, Schafer pointed to a surge of Mexican avocados flooding the U.S. market, which has led to a drastic drop in prices.
Last year, he recalled, prices were hovering around $2.20 to $2.30 per pound. Now, they’ve plummeted significantly, impacting local growers.
Ken Melvan, the chairman of the California Avocado Commission, mentioned that a decade ago, there were around 6,000 avocado growers in California. This number has since dropped to about 3,000, largely due to factors such as high labor costs and strict water regulations that hinder U.S. producers’ competitiveness against Mexico, where avocados face no tariffs under the USMCA agreement.
Schaefer highlighted a contradiction: “We’ve chosen politicians who impose regulations and increase labor costs because they think it’s vital. But at the same time, we’re letting countries with different values into our marketplace.”
Currently, Mexico dominates the U.S. avocado market, supplying around 85% of what Americans consume. The California Avocado Commission is advocating for seasonal tariff policies to create more equitable conditions for local farmers.
Schaefer pointed out that while workers in Mexico make roughly $12 a day, permanent farm workers in the U.S. earn over $20 an hour. Melvan noted that Mexico has exceeded expected revenue by over £300 million in just the first quarter this year—almost the total amount grown in an entire season.
With the announcement that the U.S. would not extend the significant trade agreement from President Trump’s first term, growers see this as a critical moment to voice their needs for industry protection.
The commission has requested federal officials to establish seasonal tariff quotas on Mexican avocado imports during California’s main harvest season from March to September. Melvan outlined that while a certain amount of imported avocados could be exempt from tariffs, anything exceeding that would be subject to significant tariffs.
He expressed a desire for tariffs of at least 25%, ideally 50%. Without these measures, he fears they will merely be absorbed into the overall business costs.
Opponents of the tariffs argue that this could lead to higher prices for consumers. However, Melvan and Schaefer counter that while farm prices have dropped by about 50%, grocery store prices have remained relatively stable.
“It won’t make it too costly for consumers; grocery stores will just have smaller margins on these products,” Schaefer stated.
U.S. Trade Representative Ambassador Jamison Greer is expected to meet with Mexican officials for further discussions related to the USMCA starting the week of July 20. Meanwhile, ongoing negotiations among the three countries continue, with the agreement still in full effect.
Melvan remains hopeful that the Trump administration will act to support American farmers. “I met with senior U.S. officials just last Tuesday about this issue, and I’m optimistic we can find a workable solution,” he remarked.
