Dee-Ann Durbin, Associated Press
The US government said Monday it is 17% liable for most fresh Mexican tomatoes after negotiations were finished without an agreement to avoid tariffs.
Supporters said it will help rebuild the US tomato industry, where import taxes are reduced, and will ensure that produce eaten in the US will also grow there. Mexico currently supplies around 70% of the US tomato market, up from 30% 20 years ago, according to the Florida Tomato Exchange.
But opponents, including US companies that grow tomatoes in Mexico, said tariffs would make fresh tomatoes even more expensive for US buyers.
Tim Richards, a professor at Morrison Agribusiness School at Arizona State University, said the US retail price of tomatoes is likely to rise by around 8.5% on a 17% mission.
The obligation comes from years of US complaints regarding Mexican tomato exports and is separate from the 30% basic tariff on products made in Mexico and the European Union, announced Saturday by President Donald Trump.
The Commerce Department said in late April that it had withdrawn from the deal it first reached with Mexico in 2019, resolving claims that the country had artificially exported tomatoes to the United States at low prices.
As part of the transaction, Mexico had to sell tomatoes at the lowest prices and adhere to other rules. Since then, the agreement has been subject to regular reviews, but both parties have always reached an agreement to avoid obligations.
When announcing its withdrawal from the tomato suspension contract, the Commerce Department said it was “full of comments” from US tomato producers who want better protection from Mexican goods.
But others, including the US Chamber of Commerce and the National Restaurant Association, were calling on the Bureau of Commerce to reach an agreement with Mexico.
In a letter sent to Secretary of Commerce Howard Lutonic last week, the Chamber of Commerce and 30 other business groups said that US companies have employed 50,000 workers and generated $8.3 billion in economic benefits to moving tomatoes from Mexico to communities across the country.
“We are concerned that withdrawing from contracts could lead to retaliation by trading partners against other commodities and crops that could pose even more difficulties for U.S. businesses and consumers,” the letter said.
Original issue: July 14th, 2025, 5:09pm EDT
