The Trump administration is imposing a 17% tariff on most contemporary Mexican tomatoes, the federal authorities stated Monday, ending a yearslong settlement with the U.S.’s southern neighbor over commerce practices.
The transfer comes amid a separate push by President Trump to extend tariffs on dozens of U.S. buying and selling companions, together with Mexico, which was advised over the weekend to anticipate 30% tariffs beginning in August. Critics argue the president’s tariff technique may push up shopper costs. However Secretary of Commerce Howard Lutnick stated in a press release Monday that the choice on tomatoes is “in keeping with President Trump’s commerce insurance policies and method with Mexico.”
“Mexico stays considered one of our best allies, however for a lot too lengthy our farmers have been crushed by unfair commerce practices that undercut pricing on produce like tomatoes. That ends at present,” Lutnick stated in a assertion.
The U.S. will get round 70% of its tomatoes from Mexico, in accordance with the Florida Tomato Change. Roughly $3 billion value of tomatoes are exported from Mexico to the U.S. yearly, an virtually threefold soar during the last 15 years, federal information reveals.
Supporters argue the tariffs may fortify the home tomato business, which the Florida Tomato Change says has been “decimated by an inflow of low-cost Mexican tomatoes.” However others warn the transfer may result in increased costs and hurt U.S. corporations that depend on imported tomatoes.
The tariffs observe a sophisticated, practically three-decade-long dispute over allegations that Mexican tomato producers had been illegally promoting tomatoes to the U.S. at unfairly low costs, harming U.S. growers. The federal authorities struck a deal in 2019 — throughout Mr. Trump’s first time period — that averted “anti-dumping” duties on tomatoes in alternate for Mexican producers agreeing to a minimal sale value.
In April, the Commerce Division introduced the U.S. would exit that deal in 90 days, saying it “has failed to guard U.S. tomato growers from unfairly priced Mexican imports.” The Commerce Division stated it will impose 20.91% tariffs — barely increased than the 17.09% levies introduced Monday.
The Florida Tomato Change praised the transfer in a press release Monday. The group’s government vice chairman, Robert Guenther, referred to as it “an infinite victory for American tomato farmers and American agriculture.”
A gaggle of lawmakers in Florida — which is likely one of the U.S.’s largest tomato-producing states — praised the deliberate duties in a letter to Lutnick final month. Sen. Rick Scott, a Florida Republican, referred to as the transfer “a significant victory for American growers and producers.”
However the U.S. Chamber of Commerce urged Lutnick to not exit the deal on Friday, arguing the Trump administration ought to attempt to reduce a brand new take care of Mexico as an alternative. The group stated “the import and sale of Mexican tomatoes generate an estimated $8.3 billion in financial advantages,” and warned withdrawing from the deal may set off retaliation from Mexico.
“Terminating the Settlement would possible have widespread repercussions on the U.S. economic system, affecting agriculture, warehousing, logistics, grocery, and restaurant industries,” the group stated in a letter to Lutnick.
The lead-up to Monday’s choice additionally drew criticism from some Democrats.
“ARIZONA, BUY YOUR TOMATOES NOW!!” Sen. Ruben Gallego, an Arizona Democrat, wrote on X final week. “Groceries are already too costly. [Mr. Trump] must reverse this choice now.”
“Salsa might be pricier, cabinets emptier, and groceries costlier. Tens of 1000’s of jobs, together with 30,000 Texans, might be in danger,” Rep. Sylvia Garcia, a Texas Democrat, wrote on X.
Mexico’s agriculture and economic system ministries criticized the transfer in a press release Monday, saying it was “unfair and in opposition to the pursuits not solely of Mexican producers but in addition of the U.S. business.” In addition they stated the large progress in tomato exports to the U.S. “stems from the standard of the product, not from any unfair practices.” The Mexican authorities stated it anticipated to discover a answer to the dispute.
Mr. Trump has despatched letters to dozens of U.S. buying and selling companions during the last week threatening increased tariffs beginning August, partially reinstating a few of the steep country-by-country levies that had been rolled out by the Trump administration in April, however shortly delayed for 90 days. The president argues the tariffs are needed to guard home jobs and proper unfair commerce practices, however many economists argue tariffs can result in sluggish financial progress and better costs.
Meals costs grew 2.9% within the 12-month interval ending in Could — increased than the nation’s general 2.4% inflation price, however properly under mid-2022, when meals costs had been rising upwards of 10% year-over-year, in accordance with federal information. The worth of tomatoes fell 6.8% from Could 2024 to Could 2025.
Federal Reserve Chair Jerome Powell advised lawmakers final month he expects tariffs to have some influence on costs. However he added: “We actually do not know the way a lot of that is going to be handed by the buyer. Now we have to attend and see.”
contributed to this report.
