US Slaps 17 % Tariff On Mexican Tomatoes
The United States has officially imposed a 17% anti-dumping duty on fresh tomato imports from Mexico, ending a long-standing agreement that had previously suspended such tariffs. The move came into effect on July 14 and is part of a broader effort to protect American agriculture.
This marks the termination of a 2019 agreement—originally built on a 1996 deal—that had allowed Mexican tomatoes to enter the U.S. without duties under certain pricing and volume conditions.
Government Justifies Protectionist Shift
U.S. Commerce Secretary Howard Lutnick stated that the decision was made to protect domestic farmers from unfair trade practices. American growers, particularly in Florida and California, have argued that the low price of imported tomatoes was harming their ability to compete fairly in the market.
Tomatoes from Mexico currently account for nearly 70% of the fresh tomatoes consumed in the U.S., representing a trade volume of nearly $3 billion annually.
Mexico Objects, Warns of Price Hikes
Mexico has criticised the move as “unjustified and damaging,” warning that the new duty will likely raise grocery prices for American consumers and reduce availability. Mexican exporters have also expressed concern about losing market share and are now exploring alternative markets in Asia and Europe.
Retailers and Restaurants Brace for Impact
Economists estimate that tomato prices in the U.S. could rise between 6% and 10% over the coming months. Retail chains, restaurant suppliers, and grocery outlets have already flagged concerns over pricing and supply stability.
Industry groups say the tariff could ultimately backfire, placing pressure on both producers and consumers without achieving long-term competitiveness.
Part of Larger Trade Strategy
This action aligns with the broader tariff policies recently pursued by the U.S. administration. Officials have also hinted at future trade barriers on other Mexican goods, signalling a more aggressive posture in North American trade relations.
While Mexico has not yet announced any retaliatory measures, officials there are urging the U.S. to return to the negotiation table to find a mutually acceptable solution.
