The elimination of the additional 10% tariff applied by the United States to a range of imports, from which avocados were expressly excluded, was interpreted by the industry as a positive sign for supplier countries. However, in the case of Colombia, the regulatory adjustment has not translated—at least so far—into a tangible change in trade performance or business returns.

This is explained by Ricardo Mejía, general manager of Fruty Green , who emphasizes that the lifting of the tariff coincided with a particularly complex scenario in the US market. “We haven't felt the impact of the 10% tariff being lifted because it occurred at a time when the US market was saturated with Mexican fruit and remains so,” he states. In that context, he adds, Colombian shipments to that destination have been very limited, which restricts any practical assessment of the benefit.

A regulatory change that has not yet been reflected in the market

From a regulatory standpoint, avocados were excluded from the reciprocal tariff scheme applied by the United States, which in theory eliminates a significant additional cost at the destination. However, for Colombia, effective market access remains contingent on the availability of commercial space and strong supply pressure from other sources. “We’ll see the effect when the market opens up to us again,” Mejía notes, although he cautions that he doesn’t expect a particularly noticeable impact in the short term.

In his analysis, the potential positive effects could begin to be seen later, when supply conditions change. “I think the effects will start to become more apparent during the voyage,” he explains, referring to a stage where Colombia could regain a more prominent role in the flow of goods to the United States.

Where there was a clear impact was during the period the tariff was in effect. According to Mejía, the additional 10% translated directly into higher costs at the destination, affecting margins throughout the entire supply chain. “This results in higher costs or lower returns for the packer, and in turn, lower returns for the producer,” he explains. As is usually the case with these types of measures, the additional cost doesn't disappear; rather, it is redistributed among the stakeholders.

In practice, that cost was mostly absorbed at the source. “Few customers absorbed it. Generally, the packing plant and the producer themselves absorbed the entire cost of that 10%,” the executive explains, highlighting the direct impact the measure had on the profitability of the Colombian business.

In summary, the exclusion of avocados from the additional 10% tariff improves access to the US market and eliminates a significant cost distortion. However, for Colombia, the true impact depends not only on the regulation itself, but also on market conditions. As long as supply remains saturated and export volumes are low, the tariff relief will, for now, remain more of a theoretical than an effective improvement.