The U.S. government announced on Monday that it will impose a 17% duty on most fresh tomatoes imported from Mexico. This decision came after negotiations between the two countries fell through without a conclusive agreement. Supporters of the tariff argue that it will help revitalize the struggling U.S. tomato industry, ensuring that more of the tomatoes consumed in America are grown domestically. Currently, about 70% of the tomatoes sold in the U.S. come from Mexico, a significant increase from just 30% two decades ago.
Robert Guenther, executive vice president of the Florida Tomato Exchange, hailed the duty as a “huge win” for American farmers and the agriculture sector. However, critics warn that this tax will raise tomato prices for consumers across the country.
Mexican Economic Secretary Marcelo Ebrard expressed disappointment, stating that the duty would primarily hurt American consumers. He emphasized that the growth of Mexican tomatoes in the U.S. market is due to their quality, not unfair trade practices.
Professor Tim Richards from Arizona State University predicts that retail prices for tomatoes in the U.S. could rise by about 8.5% due to the new duty. Jacob Jensen, a trade policy analyst, noted that areas heavily reliant on Mexican tomatoes may see price increases of nearly 10%.
Lance Jungmeyer, president of the Fresh Produce Association of the Americas, expressed concern that consumers will face higher prices and a reduced selection of tomato varieties, including popular options like vine-ripened and grape tomatoes.
The imposition of this duty arises from long-standing grievances regarding Mexico’s tomato exports and follows the U.S. government’s decision to withdraw from a deal designed to prevent the sale of Mexican tomatoes at artificially low prices. The previous agreement, known as the Tomato Suspension Agreement, required Mexico to adhere to minimum price regulations, but that agreement has been under review and ultimately fell apart due to pressure from U.S. growers.
Commerce Secretary Howard Lutnick remarked that while Mexico is an important ally, American farmers have suffered due to unfair trade practices. This tariff aligns with President Trump’s trade policy approach and aims to restore fairness to the market.
In contrast, some groups, including the U.S. Chamber of Commerce and the National Restaurant Association, had urged the Commerce Department to seek a renewed deal with Mexico, warning that the withdrawal from the agreement may lead to complications and retaliatory measures from trading partners.
As this situation develops, many will be keeping a close eye on how these changes could impact prices and supply for consumers across the nation.
