The United States plans to impose a tariff of nearly 21% on fresh Tomatoes imported from Mexico, beginning July 14. The action targets billions of dollars in agricultural Exports and aims to protect the domestic U.S. tomato Industry, though it faces pushback from importers and concerns about increased Prices for consumers.
The measure follows the U.S. Commerce Department's withdrawal from a 2019 agreement. That pact had suspended an anti-dumping investigation into Mexican tomato Exports that originally began in 1996, following allegations from U.S. producers that Mexico was selling Tomatoes below cost. Subsequent agreements mandated minimum Prices for Mexican imports, but some U.S. growers argued the terms were not adequately enforced.Supporters of the Tariff argue it will help revitalize the U.S. tomato Industry and support domestic production. Robert Guenther, executive vice president of the Florida Tomato Exchange, stated that without leveling the playing field on fair Prices, a national fresh tomato Industry could disappear in the near future. Proponents cite significant differences in labor and land costs between the two countries as factors creating an unfair advantage for Mexican growers.
Opponents of the Tariff contend it will result in higher costs for buyers in the United States. NatureSweet, a company with operations in both Mexico and the U.S., anticipates paying millions of dollars per month in additional taxes. Skip Hulett, a legal director for NatureSweet, indicated these costs would likely be passed on to consumers, given the low profit margins characteristic of the produce business.
Tim Richards, a professor at Arizona State University, estimates that retail Tomato Prices in the United States could rise by approximately 10.5% if the Tariff is implemented.
Mexico currently supplies about 70% of the U.S. Tomato market. Lance Jungmeyer, president of the Association of Fresh Produce of the Americas, argued that the decline in market share for some U.S. producers, particularly in Florida, is due to consumer preference shifts towards varieties like vine-ripened Tomatoes, which he claims Florida does not primarily grow.
Mexico's government has indicated it is seeking to negotiate a resolution. However, President Claudia Sheinbaum suggested Mexico might respond by imposing Tariffs on chicken and pork legs imported from the United States if the Tomato Tariff proceeds. Mexican states like Sinaloa, San Luis Potosi, and Michoacan are significant tomato producers and exporters to the U.S.
The potential Tariff adds uncertainty for businesses relying on Mexican imports. Adrian Burciaga, co-owner of a Mexican restaurant in Fort Worth, Texas, uses Mexican Roma Tomatoes for their specific flavor profiles.
"We are concerned about the uncertainty part," Burciaga said. "A small or medium-sized restaurant plans its budget... But we do not know these things in advance. How do you plan and how do you react?"