Have you noticed that if you add avocado to anything people will want it more? So let's try talking about Trump's trade policy but focus it on the avocado. A recent CNBC report highlights the recent increase in avocado supply which is good news for you guac-lovers out there. The CEO of Del Monte, Mohammad Abu-Ghazaleh noted that the high price had been unsustainable because "And that was actually by design of the [Mexican] growers, that they stopped picking fruit and stopped picking the avocados, which made a huge shortage in the pipeline. And that pushed the prices up to $70, $80 a box, which is really absurd."
Stop and think about that for a moment. How does that affect you personally? At $80 a box, the average retail price for a single avocado approaches $3. But what if we begin to restrict trade with Mexico? What if we impose a tariff on Mexican produce? The global average tariff on produce according to the USDA Economic Research Service is about 50%. Suddenly that $3 avocado is now $4.50. And in the winter, when almost all of our avocados are imported, that probably means fewer stores will stock avocados because that is a lot of money to spend on fruits that probably will not sell very well at retail given its exorbitant price.
Just the first of many examples of micro-level impacts of Republicanism on our economy.
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