Tariffs on Peruvian avocados exported to the United States are impacting Mission Produce’s profits.

Mission Produce imports avocados from Peru to the US market with a 10 percent tariff.

It also imports this fruit from Mexico without paying tariffs, under the USMCA.

Peruvian avocados

The Department of Agriculture projects that Peruvian avocado exports will total 630,000 metric tons in 2025. This will mark a 2% increase over the previous year.

In contrast, in 2024, foreign sales fell 4% compared to 2023. A total of 594,000 tons were recorded. The decline was due to unusually cold weather conditions that reduced productivity.

«Sales of Peruvian fruit are concentrated in the second half of the fiscal year, coinciding with the Peruvian avocado harvest season. If we are unable to pass on the cost of tariffs to customers, we could suffer a negative impact on gross profit,» Mission Produce said in its latest quarterly report.

The USDA forecasts that Mexican avocado production in 2025 will reach 2.75 million tons. This represents a year-on-year increase of 3%.

In addition, it estimates that exports from Mexico will grow 5% compared to 2024. Thus, the volume shipped abroad will total 1.34 million tons.

US imports

On February 1, 2025, the United States imposed a 25% tariff on certain imports, including all products from Mexico.

The measure was in effect between March 4 and March 6. During that period, Mission Produce paid $1.1 million in tariffs on its Mexican purchases. Due to the short duration, the company did not pass the cost on to customers.

On March 6, Washington exempted Mexican imports that complied with the USMCA from tariffs. However, on April 2, it imposed a new minimum tariff of 10% on all imports, effective April 9, excluding Mexico.

Mission Produce’s avocados come mainly from Mexico and Peru. It also sources from other countries in Central and South America, some of which are subject to tariffs higher than 10%.