More fully "ahuehuete tree". A Mexican cypress, Taxodium mucronatum (family Cupressaceae), which can attain great girth, commonly grown as an ornamental and also important for the production of timber and (especially formerly) medicinal resins.
The ahuehuete is the national tree of Mexico.
Late 18th century. In some forms from (i) French ahuehuete and its etymon (ii) Mexican Spanish ahuehuete from Nahuatl āhuēhuētl.