The price of tomatoes in the United States could rise as the federal government prepares to withdraw from a long-standing trade agreement with Mexico, potentially triggering a 20.91% tariff on most tomato imports. The move follows complaints from U.S. growers, particularly in Florida, who argue that the volume of Mexican imports drives down domestic prices.
The agreement in question, known as the Tomato Suspension Agreement, was originally established in 1996 between the U.S. Department of Commerce and Mexican tomato producers and exporters. It was designed to prevent dumping by ensuring tomatoes were sold at or above a set reference price. The agreement, which excludes tomatoes for processing, was last updated in 2019.
On April 14, the International Trade Administration announced the U.S. would exit the agreement on July 14, making way for the tariff to be imposed. The Department of Agriculture reports that Mexico supplies over 90% of the tomatoes imported into the U.S., making it the dominant source for vine-ripened, specialty, and Roma tomatoes.
Julie Murphree of the Arizona Farm Bureau warned that domestic production, including greenhouse-grown tomatoes, is insufficient to meet national demand. "As of right now, while we do have greenhouses and while we are producing tomatoes, we can't supply enough for our consumer demand," Murphree said.
The Fresh Produce Association of the Americas (FPAA) expressed concern that the tariff would significantly increase prices for consumers during a time of food inflation. In a statement, the FPAA urged the administration to negotiate a new agreement that supports innovation among importers and growers alike, rather than imposing duties.
Murphree also cautioned that the tariff could jeopardize thousands of jobs in Arizona, particularly in border communities like Nogales, where employment is heavily linked to the tomato supply chain through warehousing, trucking, distribution, and retail. The USDA further noted that Mexican producers are expected to reduce planting in the upcoming autumn-winter season in response to the potential tariff.
As the July 14 deadline approaches, both industry representatives and consumer groups are watching closely, anticipating disruptions to supply and pricing in one of the most consumed produce categories in the U.S.
Source 1: KJZZ Phoenix
Source 2: Mass Live