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yesterday

U.S. Imposes 20.9% Tariff on Mexican Tomatoes After Ending Decades-Old Deal

Supporters say it shields domestic farmers from dumping; critics contend it will drive up prices, hamper greenhouse innovation, lead to restaurant closures.

Justin De Leon, owner of Apollonia’s Pizzeria in Los Angeles, writes an order for a customer.
Boxes of tomatoes are seen at the Central de Abastos market in Guadalajara, Jalisco state, Mexico on January 31, 2025.
Image
Tomatoes grow on the vine at Heirloom Farms, located in Maneadero, Baja California, Mexico.

Overview

  • The Commerce Department withdrew from the 1996 Tomato Suspension Agreement in April, triggering 20.9 percent duties on most Mexican tomato imports starting July 14.
  • Consumer tomato prices could climb about 10 percent, with demand projected to fall 5 percent, according to agribusiness experts at Arizona State University.
  • Mexican producers—who supplied nearly 70 percent of U.S. tomato imports before the tariffs—reject allegations of dumping and call the move politically motivated.
  • Small businesses like Teresa Razo’s Southern California restaurants warn they may need to raise menu prices or face bankruptcy if tomato costs rise.
  • Greenhouse growers caution that upfront tariffs and bonding requirements will erode capital for expansion and slow innovation in controlled environment agriculture.