California avocado growers are urging the U.S. government to impose seasonal tariffs on Mexican avocado imports, citing concerns over the survival of their industry amid declining prices and increased competition. The growers argue that the influx of avocados from Mexico, which currently enter the U.S. market tariff-free under the United States-Mexico-Canada Agreement (USMCA), has driven down prices and made it difficult for domestic producers to remain competitive.

Andy Sheaffer, owner of Vista Punta Gorda Farms in Ventura and a grower with two decades of experience, described the situation as increasingly untenable. “If the trend continues the way it’s going, we’ve been having some pretty difficult conversations,” he said. Sheaffer noted that prices for California avocados have dropped sharply over the past year, from around $2.20 to $2.30 per pound at the start of last season to current prices between 75 cents and $1.10 per pound. He attributes this decline to the unregulated surge of Mexican imports.

Ken Melban, president of the California Avocado Commission, reported that the number of avocado growers in California has halved over the past decade, declining from roughly 6,000 to about 3,000. Melban highlighted several challenges facing domestic producers, including high labor costs and water regulations, which he says place California farmers at a disadvantage compared to Mexican growers. Sheaffer added that labor costs in California exceed $20 per hour for permanent workers, contrasting sharply with average wages of approximately $12 per day in Mexico.

The Commission is advocating for a seasonal Tariff Rate Quota on Mexican avocado shipments during California’s primary harvest period, from March through September. The proposed system would allow a set volume of imports to enter tariff-free, with substantial tariffs—Melban suggested a minimum of 25%, potentially up to 50%—applied to any volume above that threshold. The goal is to provide protection to American farmers without completely disrupting trade flows.

Critics of the tariff proposal warn that additional costs could be passed on to consumers. However, both Melban and Sheaffer rejected this claim, arguing that retail avocado prices have remained relatively stable even as wholesale prices for growers have fallen by approximately 50%. Sheaffer contended that any increased costs would likely reduce grocery store profit margins, rather than significantly raising prices at the consumer level.

The California Avocado Commission has recently engaged with senior U.S. officials to discuss the potential for tariff implementation. Melban expressed cautious optimism following a meeting last week, suggesting there is a willingness within the administration to find a solution that balances the interests of farmers, importers, and consumers. The current U.S. administration’s decision not to extend the original trade agreement signed under the Trump administration is seen by the Commission as an opening to reexamine measures aimed at supporting domestic avocado producers.