Food & Beverage

What's the Tariff on Avocados?

Nearly all US avocados imported from Mexico.

๐Ÿ’ก
The 25% tariff on Avocados is paid by American importers, not foreign manufacturers. Your Bag of 5 avocados now costs $6.24 instead of $4.99 โ€” that's $1.25 more, or 25% of the sticker price going directly to tariff taxes.

Current Tariff Rate

25%

Pre-2025 Rate

0%

Rate Increase

+25pp

Price Impact

+25%

+$1.25

Real-World Price Impact

Before Tariffs

$4.99

Bag of 5 avocados

โ†’

After Tariffs

$6.24

Bag of 5 avocados

That's $1.25 more per unit โ€” a 25% price increase paid by the American buyer.

Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary โ€” manufacturers may absorb some costs, shift production, or adjust margins.

The Story Behind This Tariff

The avocado tariff is among the most politically charged trade actions because of the fruit's extraordinary US-Mexico economic entanglement. Mexico supplies 80% of US avocados, virtually all from the state of Michoacรกn, where avocado orchards have become both an economic lifeline and a source of cartel conflict. The 25% IEEPA tariff threatens a $3B annual trade that employs 300,000 Mexican workers and feeds America's seemingly insatiable appetite for guacamole and avocado toast. California and Florida produce the remaining 20%, but domestic supply cannot scale quickly โ€” avocado trees take 5 years to mature. The tariff arrived just as avocados completed their transformation from niche ingredient to American dietary staple, with per-capita consumption quintupling since 2000. Restaurants, particularly Mexican and Tex-Mex chains, face acute menu repricing. The Super Bowl alone drives $200M in avocado sales, making the tariff a cultural flashpoint.

๐Ÿ“ฆ Supply Chain

Primary Origin

Mexico

Made in USA

20%

Import Volume

$3.1B

Alternatives

California (limited), Peru, Colombia (growing)

๐Ÿ“… Tariff Timeline

1997

US lifts avocado import ban from Mexico (phytosanitary)

0%

2022

Brief import suspension over cartel threats to USDA inspectors

0%

2025

IEEPA tariff on Mexican agricultural imports

25%

๐Ÿ‘ฅ Consumer Impact

Households Affected

105M

Annual Cost Per Household

$38

๐Ÿ’ก Did You Know?

  • โ€ขAmericans consume 3 billion avocados per year โ€” the fruit went from unknown in 1990 to a $3B industry in 30 years
  • โ€ขMichoacรกn's avocado trade is so valuable that cartels extort growers, calling avocados 'green gold'
  • โ€ขA single Super Bowl Sunday drives $200M in avocado sales โ€” the tariff adds $50M to America's guacamole bill

Tariff Details

HTS Code
0804.40
Current Rate
25%
Pre-2025 Rate
0%
Tariff Type
IEEPA

Legal Authority

IEEPA Executive Order (April 2, 2025)

Effective: April 2, 2025

"Liberation Day" โ€” broad tariffs under the International Emergency Economic Powers Act

The tariff on Avocados is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.

Who Actually Pays This Tariff?

Despite claims that tariffs are paid by foreign countries, the 25% tariff on Avocados is paid by American importers โ€” US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.

  • โœ“ The foreign seller receives the same price as before
  • โœ“ The US importer pays 25% of the customs value to CBP
  • โœ“ The retailer marks up the higher landed cost
  • โœ“ You pay more at the register: $4.99 โ†’ $6.24

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