trade agreement

U.S. Withdraws from Long-Standing Trade Agreement-Tomato Tariffs to Skyrocket

DanEconomy, Exports/Imports, Fruits & Vegetables, Tariffs, Tomatoes, Trade, Vegetables

trade agreement
Meutia Chaerani / Indradi Soemardjan / via Wikimedia Commons image

Starting in mid-July, tomatoes imported from Mexico will face a 17.09% tariff as the U.S. government withdraws from a long-standing trade agreement that previously regulated tomato imports. The decision aims to support domestic growers, especially in Florida, a state known for its tomato production. Officials argue that Mexican pricing practices have created an unfair competitive advantage, making it difficult for U.S. farmers to compete.

However, industry stakeholders, including importers and multinational growers, have raised concerns about the impact of this tariff. Currently, approximately 65% of the tomatoes consumed in the U.S. come from Mexico, including popular varieties such as cherry tomatoes and vine-ripened tomatoes. These varieties are often preferred by consumers over traditional round tomatoes grown outdoors in Florida.

Critics argue that greenhouse-grown Mexican tomatoes dominate the market because they offer higher sweetness levels, improved consistency, and greater consumer demand. The introduction of this tariff could disrupt supply chains, raise prices for consumers, and limit access to preferred tomato varieties.

The Mexican government is pushing back against the decision, seeking to renegotiate the agreement. As part of its response, Mexico has hinted at retaliatory measures, including the possibility of imposing tariffs on U.S. meat exports, which would significantly affect American producers.

U.S. Withdraws from Long-Standing Trade Agreement-Tomato Tariffs to Skyrocket