Experts warn of distorted trade and rising grocery bills as the U.S. exits long-standing tomato agreement.
United States Announces 20.91% Tariff on Mexican Tomatoes
The Trump administration detailed that these tariffs will take effect starting July 14.
The U.S. government announced on Monday that it will impose a 20.91% tariff on most imports of Mexican tomatoes.
The Department of Commerce stated that the tariffs will take effect on July 14, following the U.S. withdrawal from a trade agreement that it claims failed to protect domestic tomato growers.
In 2024, the United States imported $3.24 billion USD worth of Mexican tomatoes, a 15% increase from the previous year. Mexico accounted for 86% of all tomato imports into the U.S.—a share that has remained steady in recent years.
“This measure will allow U.S. tomato producers to compete fairly in the market,” the Department of Commerce said in a statement.
In response, the Agricultural Markets Consulting Group (GCMA) expressed concern over the announcement, arguing that the unilateral move distorts bilateral agricultural trade.
Currently, Mexican tomatoes supply 55% of U.S. consumption, and 98% of Mexico’s tomato exports are destined for the U.S. market.
“Mexican tomatoes have been key in providing affordable prices and year-round availability to U.S. consumers, thanks to their quality, flavor, and competitiveness,” GCMA stated.
According to GCMA, the decision is largely due to pressure from Florida growers, who have repeatedly filed unproven dumping allegations rather than addressing their own productivity challenges.
GCMA emphasized that Mexican producers are highly efficient and competitive, benefiting from advantages in logistics, cost, and quality.
If enacted, the tariff could impact not just exporters and producers, but also U.S. consumers and grocery chains, who rely on the steady supply of Mexican tomatoes.
In 2019, Mexican tomato producers reached an agreement with the Trump administration to avoid an anti-dumping investigation and resolve a long-standing trade dispute.
The Tomato Suspension Agreement (TSA), signed between the U.S. Department of Commerce and signatory Mexican producers/exporters of fresh tomatoes, required that tomatoes be sold at or above a minimum reference price to eliminate harmful impacts on the U.S. market.
The updated 2019 agreement applied to all fresh and chilled tomatoes, except those meant for processing.
Tomato trade between the U.S. and Mexico has been governed by suspension agreements since 1996, with revisions in 2002, 2008, 2013, and 2019.
In 2019, the Department of Commerce set reference prices as follows:
- Round and Roma tomatoes: $0.31/lb
- Tomatoes with stems: $0.46/lb
- Vine tomatoes: $0.50/lb
- Specialty loose tomatoes: $0.49/lb
- Specialty packaged tomatoes: $0.59/lb
Organic tomatoes were priced 40% higher than their non-organic counterparts.
The agreement also included legal safeguards and an inspection mechanism, according to U.S. authorities at the time.
