Tariff Tensions: US Imposes Fresh Duties on Mexican Tomatoes

The US government announced on Monday that it is imposing a 17% tariff on fresh Mexican tomatoes, following unsuccessful negotiations aimed at avoiding the duty.

Supporters argue that this measure will help revive the declining US tomato industry and promote domestic production. Currently, Mexico supplies about 70% of the US tomato market, a significant increase from two decades ago, according to the Florida Tomato Exchange.

Conversely, critics, including US companies that cultivate tomatoes in Mexico, predict that the tariff will drive up prices for American consumers. Economics expert Tim Richards from Arizona State University anticipates an 8.5% rise in US retail tomato prices due to the 17% duty.

This duty is rooted in longstanding US grievances over Mexican tomato exports and is distinct from the 30% tariff announced by President Donald Trump on goods from Mexico and the European Union.

The US Commerce Department disclosed in April its decision to exit a 2019 agreement with Mexico intended to resolve allegations of Mexico dumping tomatoes at lower prices. The deal mandated Mexico to sell tomatoes at a minimum price and comply with additional regulations. Despite previous successful negotiations preventing duties, the US decided to pull out of the Tomato Suspension Agreement amid pressure from US tomato growers seeking stricter protection against Mexican imports.

However, influential entities such as the US Chamber of Commerce and the National Restaurant Association advocated for a bilateral agreement with Mexico. Last week, a joint letter to Commerce Secretary Howard Lutnick, signed by the Chamber of Commerce and 30 other business groups, highlighted that moving tomatoes from Mexico supports 50,000 US jobs and generates $8.3 billion in economic benefits nationwide.

''We worry that stepping away from the agreement now – amidst existing trade uncertainties – could provoke retaliatory actions affecting other US commodities, potentially exacerbating challenges for American businesses and consumers,'' the letter warned.

(With inputs from agencies.)