Colombian Lime Gains a Prominent Position in the US Due to Mexican Tariff Uncertainty

Sourcing 85% of its supply from Mexico, the United States (US) lime market faces potential disruption as the US administration imposed "reciprocal" tariffs starting April 2, 2025. However, due to the US-Mexico-Canada Agreement (USMCA), limes are exempted, at least for now. Nevertheless, the situation shows how quickly trade policies can shift. This has prompted importers to proactively explore alternatives to complement Mexican volumes, given the potential for higher import prices. 

Colombia is a key focus in this diversification strategy. In Jan-25, US imports of limes from Colombia increased to 8.84 million kilograms (kg), up from 4.01 million kg the previous year. However, this increased visibility comes with significant scrutiny. There are pressing concerns regarding the quality of Colombian limes this year, citing rotten fruit and quality that make them unsuitable for the US market, as well as noting manual and rustic packing processes. These quality issues have reportedly impacted profitability, making it a challenging year for Colombian limes in the US market, particularly in terms of return on investment. Even though higher prices for Mexican limes initially set different expectations for Colombian growers, the issues have not been resolved. With the Mexican season concluding and tariff threats persisting, Tridge anticipates that the US will supplement lime volumes from Colombia and Peru to complement the Mexican window despite these challenges.

Figure 1. Colombia Limes Export Volume 2020-2024

Source: Tridge Eye

Beyond Colombia, Peru is also strengthening its position as a reliable alternative. Industry experts recognize Peruvian growers for producing high-quality products and employing good agricultural practices, resulting in very promising limes that can thrive in the country. US traders are also exploring options in Ecuador and some Central American countries, indicating a broader industry trend of de-risking supply chains ahead of the potential tariff implementation.

The potential imposition of US tariffs on Mexican limes is undeniably reshaping trade flows and sourcing strategies. Colombian limes are consequently gaining a more prominent footing as US importers prioritize diversification. While increased import volumes indicate growing market penetration for Colombia, persistent quality and consistency issues pose a significant hurdle. To fully capitalize on this window of opportunity and solidify a substantial market share, Colombian exporters must urgently address these concerns by enhancing packaging standards and implementing effective quality control measures. The coming months will be crucial in determining whether Colombia can meet the rigorous demands of the US market and convert current attention into sustained success, especially as other origins, such as Peru, also vie for a larger portion of the import market.