US Tariff on Food & Agriculture from Mexico

Mexico is the largest source of food and agricultural imports to the United States, and virtually all qualifying products enter duty-free under USMCA. Annual food trade from Mexico exceeds $45 billion.

Under USMCA, food and agricultural products that meet rules of origin (grown or substantially processed in Mexico) enter at 0% duty. This covers the vast majority of Mexican food exports: fresh produce (avocados, tomatoes, berries, peppers, limes), beverages (beer, tequila, mezcal), processed foods, meat products, and dairy.

Key product categories and trade volumes: avocados ($3.5B+ annually — Mexico supplies ~80% of US consumption), tomatoes ($2.5B+), berries (strawberries, blueberries, raspberries), beer ($5B+ — Corona, Modelo, Pacifico), tequila and mezcal ($4B+), and fresh peppers and vegetables.

Some agricultural products are subject to tariff-rate quotas (TRQs) under USMCA, meaning duty-free access applies up to a certain volume, with higher rates above the quota. Sugar is the most notable TRQ product. Seasonal restrictions may also apply to certain fresh produce to protect US farmers during domestic growing seasons.

For non-USMCA-qualifying food (e.g., products substantially processed from non-USMCA ingredients), the rate would be 5% MFN + 10% Section 122 = 15%. This can affect processed foods using ingredients sourced from outside North America.

Compared to other food sources: China faces 40% total (5% MFN + 25% Section 301 + 10% Section 122), EU countries face 15% (5% + 10%), and most other countries face 15%. Mexico's 0% rate provides an enormous advantage for food sourcing.

Phytosanitary requirements (FDA and APHIS regulations) apply regardless of tariff rates. All food imports must meet US food safety standards, labeling requirements, and inspection protocols. These compliance costs should be factored into total landed cost even when tariffs are zero.