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3w ago

U.S. to Impose 21% Tariff on Mexican Tomatoes, Ending Decades-Old Trade Agreement

The Commerce Department's decision, effective July 14, aims to protect U.S. growers but raises concerns over higher prices, reduced variety, and supply chain disruptions.

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Overview

  • The U.S. Department of Commerce announced it will withdraw from the 2019 Tomato Suspension Agreement and impose a 20.91% tariff on most Mexican tomato imports starting July 14, 2025.
  • The decision follows claims by domestic growers, particularly in Florida, that the agreement failed to prevent Mexican producers from undercutting prices and dominating the U.S. market.
  • Mexico currently supplies 85% of U.S. tomato imports, valued at $2.8 billion, with over 99.99% compliance to the 2019 agreement's pricing terms.
  • Critics, including Sen. Ruben Gallego and NatureSweet, warn the tariffs could lead to a 50% rise in tomato prices, fewer varieties, job losses, and potential trade tensions.
  • The move underscores the Trump administration's focus on strict trade enforcement, prioritizing domestic agricultural interests despite concerns over consumer impact and market stability.