The US government on Monday announced a 17% import duty on most fresh tomatoes from Mexico, aiming to protect and revive its own domestic tomato industry. The move comes after talks with Mexican officials collapsed without reaching a new agreement to avoid the tariff.Mexico currently supplies about 70% of the US tomato market, up from just 30% two decades ago. The new duty, which took effect immediately on Monday, is expected to raise tomato prices in the US while benefiting American growers.Supporters of the move argue that it is essential to support US agriculture. Robert Guenther, executive vice president of the Florida tomato exchange, called the tariff “an enormous victory for American tomato farmers and American agriculture.”The decision marks the end of the 2019 tomato suspension agreement between the two countries, which allowed Mexico to export tomatoes to the US under strict price rules and other conditions to avoid being accused of dumping, selling produce at artificially low prices.According to the US commerce department, the deal is being scrapped due to overwhelming complaints from American tomato producers who say they are unable to compete fairly with cheaper Mexican imports. “Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,” said commerce secretary Howard Lutnick.However, critics say the duty will hurt consumers by driving up prices and reducing variety. “As an industry, we are saddened that American consumers will have to pay a tomato tax, or duty, for a reduced selection of the tomatoes they prefer, such as tomatoes on the vine, grape tomatoes, Romas, cocktail tomatoes and other specialty varieties,” said Lance Jungmeyer, president of the Fresh produce association of the Americas.Tim Richards, an agribusiness professor at Arizona State University, estimated that the tariff could push up retail tomato prices by about 8.5 per cent. Jacob Jensen, a trade policy analyst, said that areas more dependent on Mexican tomatoes may see price jumps as high as 10 per cent, while others could experience a 6 per cent rise.Business groups have also warned of other consequences. In a letter to the commerce department, the US chamber of commerce and 30 other organisations said the move could trigger retaliation from trade partners and harm industries beyond tomatoes. “We are concerned that withdrawing from the agreement – at a time when the business community is already navigating significant trade uncertainty – could lead to retaliatory actions by our trading partners,” the letter read.Furthermore, state leaders expressed concerns. Texas governor Greg Abbott, a Republican, and Arizona governor Katie Hobbs, a Democrat, had urged the government to preserve the agreement to avoid harming their local economies.The new policy aligns with US President Donald Trump’s broader trade approach and comes shortly after his announcement of a separate 30% base tariff on goods from Mexico and the European Union.
