Mexico Tariffs Could Spoil America's Appetite

The tariffs on Mexican goods scheduled to go into effect next Monday could cost American households dearly. While cars and auto parts make up the largest chunk of U.S. imports from the south, Mexico is also an important supplier of agricultural goods to the United States. As many economists expect U.S. consumers to bear the brunt of Trump’s proposed tariffs, Americans could be in for an unpleasant surprise when they go grocery shopping in the coming weeks.

In 2018, the U.S. imported billions worth of fruits, vegetables and alcoholic beverages from its southern neighbor, with avocados the most obvious example. Despite being one of the largest avocado producers in the world itself, the United States imported more than 900,000 tons of avocados worth a total of $2.14 billion from Mexico last year, accounting for 87 percent of total avocado imports and roughly 80 percent of American avocado consumption.

It's not just guacamole lovers whose appetite may be spoiled though. The U.S. also relies heavily on strawberries, tomatoes and lemons grown south of the border, not to mention that Mexico is by far the largest source of imported beer.