Tomato prices in the USA could increase due to the new tariffs on Mexico
The new tariff is 21% after the plan to reverse the Tomato Suspension Agreement in force since 1996, which favored Mexican exports
According to a report published in June by the United States Department of Agriculture, the North American country is one of the main importing markets for Mexican products, including tomatoes, which is currently putting the agricultural sector in turmoil after the announcement by from the Executive a new tariff rate.
The new 21% tax on Mexican tomato imports goes into effect this Monday, and both economic experts and producers, business owners and consumers are concerned about the decrease in imports and the exponential increase in prices.
From the beginning, President Donald Trump has assured that decisions regarding tariff matters are made with the objective of increasing national production and benefiting national producers in this case.
In April of this year, the Department of Commerce announced the withdrawal of the Tomato Suspension Agreement that was in force since 1996 and was updated in 2019 in which antidumping duties were suspended, allowing Mexican exporters to sell their products at a lower price than the national market.
Currently, Mexico covers 70% of the US market and since 1996, US producers have plummeted to only 30%, and Despite the Florida Tomato Exchange's claims that dumping margins are below the agreements, they are still harming domestic farmers.
For Robert Guenther, executive vice president of the Florida Tomato Exchange, "for more than three decades, five consecutive agreements have failed to stop the illegal dumping of Mexican tomatoes at unfair prices in the U.S. market, the trade agreement has only harmed American farmers," he said.
According to Timothy Richards, professor of agribusiness at Arizona State University,In the coming months, the price of tomatoes could increase by 10% and demand for the product could fall by up to 5% as a result of the new tariffs.

