Trump Just Gave Millennial Brunch Favorite Avocado a Gut Punch

(Bloomberg) -- Avocados, berries and asparagus -- some of the ingredients favored by American millennials for a perfect brunch -- just got more expensive thanks to Donald Trump’s latest salvo on Mexico.

The U.S. President rattled global markets by imposing a 5% tariff on Mexican goods and threatening to increase it to 25%. The lower rate will take effect on June 10 and won’t be lifted “until such time as illegal migrants coming through Mexico, and into our country, STOP,” Trump said in a Twitter post. Mexico, the biggest buyer of American corn, said it doesn’t want a trade war and won’t retaliate until the countries discuss the issue.

Prices of avocado, a fruit that’s seen sales surge worldwide in recent years on growing popularity with the younger crowd, have almost doubled in the past two months amid Trump rhetoric about a possible border closing with Mexico, which is also a major mixed berry and asparagus supplier to the U.S.

On the flip side, American farmers, already roiled by a trade war with China and a relentless deluge during the planting season, could see demand shrink from another big export market. Mexico is the top buyer for U.S. corn, accounting for about $2.8 billion worth of grain shipments last season. The country is also the top importer of U.S. pork and non-fat dry milk, two other key items in the country’s kitchens.

To contact the reporter on this story: Alfred Cang in Singapore at acang@bloomberg.net

To contact the editors responsible for this story: Anna Kitanaka at akitanaka@bloomberg.net, James Poole

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