A 20.91% tariff on most contemporary tomato imports from Mexico to the US was anticipated to enter impact on Monday because the decades-old Tomato Suspension Settlement (TSA) involves an finish.
The TSA had allowed Mexican producers to export tomatoes to the U.S. with out paying antidumping duties. Dumping is the observe of promoting low-cost exports right into a international market to undercut homegrown merchandise.
Mexican tomato exporters had beforehand agreed to set minimal costs to take care of the deal. Nonetheless, the U.S. Division of Commerce determined to not revive the settlement throughout an April assembly with the Division of Agriculture.
“With the termination of this settlement, Commerce will institute an antidumping obligation order on July 14, 2025, leading to duties of 20.91% on most imports of tomatoes from Mexico,” Commerce mentioned in an April 14 press launch.
“The present settlement has failed to guard U.S. tomato growers from unfairly priced Mexican imports,” the press launch reads.
The brand new tariff is predicted to have a right away impact on shopper costs and consumption within the U.S., in addition to on Mexican exports and jobs within the sector.
As of Could 2025, field-grown tomatoes price U.S. shoppers round US $3.75 per kilogram, in keeping with the U.S. Bureau of Labor Statistics.
Shopper costs are anticipated to extend by round 10% and demand might fall by 5% owing to the brand new tariff, Arizona State College professor Timothy Richards informed CNN.
Within the Mexican border state of Sinaloa, between 200,000 and 400,000 laborers work on tomato fields, in keeping with the state authorities.
Whereas Mexico enjoys year-round crops, tomato-producing areas within the U.S. are seasonal, with Florida rising tomatoes between October and June, and California from Could to November.
The revived tariff’s affect on Mexico
“Mexico represents 61% of the overall U.S. contemporary tomato provide, virtually double the home manufacturing capability (…) it could require between 16,996 and 101,171 extra hectares of manufacturing to compensate for the shortage of Mexican tomatoes,” American Motion Discussion board commerce coverage analyst Jacob Jensen was reported saying by the newspaper Milenio.
The U.S. is Mexico’s prime tomato export market, with a 93% share, representing an annual worth of over US $2 billion.
“They will’t exchange us as a result of there aren’t many different nations that produce this amount of wonderful tomatoes at a really affordable worth,” Agriculture Minister Julio Berdegué mentioned in April.
Some firms, reminiscent of Heinz, which makes use of solely domestically produced tomatoes for its ketchup merchandise bought within the U.S., will keep away from the tariff.
Nonetheless, a number of sectoral consultants, reminiscent of María Antonieta Barrón, an agribusiness specialist, imagine the tariff will enhance the value of Mexican merchandise and scale back their competitiveness within the U.S. market.
With studies from Animal Politico, Milenio and CNN
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