## US Imposes 17% Duty on Fresh Mexican Tomatoes, Aiming to Boost Domestic Industry **Report Provider:** AP News **Author:** DEE-ANN DURBIN **Date:** Monday, [Month] [Day], [Year] (specific date not provided in the snippet, but the report was published on July 15, 2025) ### Key Findings and Conclusions: The U.S. government has announced an **immediate 17% duty** on most fresh Mexican tomatoes. This action follows the breakdown of negotiations aimed at averting the tariff. The stated goal of this import tax is to **rebuild the shrinking U.S. tomato industry** and ensure that produce consumed in the U.S. is also grown domestically. ### Key Statistics and Metrics: * **17% Duty:** The newly imposed tariff rate on most fresh Mexican tomatoes. * **70% Market Share:** Mexico currently supplies approximately 70% of the U.S. tomato market. * **30% Market Share (Two Decades Ago):** This figure highlights the significant growth of Mexican tomato imports into the U.S. over the past twenty years, according to the Florida Tomato Exchange. * **8.5% Price Increase:** U.S. retail prices for tomatoes are projected to rise by around 8.5% due to the 17% duty, according to Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University. * **6% to 10% Price Increase:** Jacob Jensen, a trade policy analyst at the American Action Forum, predicts price increases ranging from approximately 6% in some parts of the U.S. to close to 10% in areas more reliant on Mexican tomatoes, due to difficulties in replacing that supply. * **$8.3 Billion in Economic Benefits:** U.S. companies generate this amount by moving tomatoes from Mexico into communities across the country, employing 50,000 workers, as stated by the U.S. Chamber of Commerce and 30 other business groups. ### Important Recommendations/Statements: * **Proponents' View:** Robert Guenther, executive vice president of the Florida Tomato Exchange, called the duty "an enormous victory for American tomato farmers and American agriculture." * **Opponents' View:** * Mexico's Economic Secretary Marcelo Ebrard stated the move would "only affect the pockets of American consumers" and is "unfair and against not only Mexican producers, but on the American industry." He emphasized that Mexican tomatoes have gained market share due to their quality, not unfair practices. * Lance Jungmeyer, president of the Fresh Produce Association of the Americas, expressed sadness that "American consumers will have to pay a tomato tax, or duty, for a reduced selection of the tomatoes they prefer." * The U.S. Chamber of Commerce and the National Restaurant Association had urged the Commerce Department to reach an agreement with Mexico. * Texas Gov. Greg Abbott and Arizona Gov. Katie Hobbs also called for the current tomato agreement to remain in place. * A letter from the U.S. Chamber of Commerce and 30 other business groups warned of potential "retaliatory actions by our trading partners against other commodities and crops." ### Significant Trends or Changes: * **Shift in Market Dynamics:** The U.S. government's action signifies a move to curb the dominant market share held by Mexican tomatoes. * **Withdrawal from Agreement:** The U.S. Commerce Department withdrew from the **Tomato Suspension Agreement**, a deal first reached with Mexico in 2019. This agreement had previously settled allegations of dumping (exporting tomatoes at artificially low prices) by requiring Mexico to sell tomatoes at a minimum price and adhere to other rules. * **Policy Alignment:** Commerce Secretary Howard Lutnick stated the rule change aligns with President Trump's trade policies and approach with Mexico, emphasizing a desire to protect American farmers from what he termed "unfair trade practices." ### Notable Risks or Concerns: * **Increased Consumer Costs:** Opponents widely believe the tariff will lead to higher tomato prices for U.S. consumers. * **Reduced Consumer Choice:** The duty may limit the availability of preferred tomato varieties, such as vine-ripened, grape, Roma, and cocktail tomatoes. * **Trade Retaliation:** Concerns exist that this action could provoke retaliatory measures from trading partners against other U.S. commodities and crops, impacting U.S. businesses and consumers. * **Impact on U.S. Businesses:** The U.S. Chamber of Commerce highlighted the significant economic benefits and employment generated by the trade of Mexican tomatoes into the U.S. ### Material Financial Data: * **$8.3 billion:** Economic benefits generated by U.S. companies involved in moving Mexican tomatoes. * **50,000:** Number of workers employed by U.S. companies in this sector. ### Context and Background: The imposition of the duty stems from a long-standing U.S. complaint regarding Mexico's tomato exports. It is separate from a previously announced 30% base tariff on products from Mexico and the European Union. The Commerce Department's withdrawal from the Tomato Suspension Agreement was reportedly influenced by numerous comments from U.S. tomato growers seeking greater protection. Mexican greenhouses are noted for specializing in vine-ripened tomatoes, while Florida tomatoes are typically field-grown and picked green, suggesting a difference in production methods that may contribute to the market dynamics.
US imposes a 17% duty on fresh Mexican tomatoes in hopes of boosting domestic production
Read original at AP News →Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year] The U.S. government said Monday it is immediately placing a 17% duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff.Proponents said the import tax will help rebuild the shrinking U.
S. tomato industry and ensure that produce eaten in the U.S. is also grown there. Mexico currently supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange.Robert Guenther, the trade group’s executive vice president, said the duty was “an enormous victory for American tomato farmers and American agriculture.
” But opponents said the import tax will make tomatoes more expensive for U.S. consumers. Mexico’s Economic Secretary Marcelo Ebrard said the government would continue looking for a way to once again suspend the tariff, part of ongoing negotiations between the two trading partners. In a statement Monday, he wrote that the move would “only affect the pockets of American consumers.
“It’s unfair and against not only Mexican producers, but on the American industry. The ground that Mexican fresh tomatoes has gained in the U.S. is because of the quality of the product, not from unfair practices,” he wrote.Mexican greenhouses specialize in vine-ripened tomatoes, while Florida tomatoes are typically grown in fields and picked green.
Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University, said U.S. retail prices for tomatoes will likely rise around 8.5% with a 17% duty.Jacob Jensen, a trade policy analyst at the American Action Forum, a right-leaning policy institute, said areas with a higher reliance on Mexican tomatoes could see price increases close to 10%, since it will be more difficult to replace that supply, while other parts of the U.
S. could see price increases closer to 6%.“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, which represents importers of Mexican tomatoes.
The duty stems from a longstanding U.S. complaint about Mexico’s tomato exports and is separate from the 30% base tariff on products made in Mexico and the European Union that President Donald Trump announced Saturday.The Commerce Department said in late April that it was withdrawing from a deal it first reached with Mexico in 2019 to settle allegations the country was exporting tomatoes to the U.
S. at artificially low prices, a practice known as dumping.As part of the deal, Mexico had to sell its tomatoes at a minimum price and abide by other rules. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties.In announcing its withdrawal from the Tomato Suspension Agreement, the Commerce Department said it had been “flooded with comments” from U.
S. tomato growers who wanted better protection from Mexican goods.“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,” Commerce Secretary Howard Lutnick said in a statement.
“This rule change is in line with President Trump’s trade policies and approach with Mexico.” But others, including the U.S. Chamber of Commerce and the National Restaurant Association, had called on the Commerce Department to reach an agreement with Mexico. Texas Gov. Greg Abbott, a Republican, and Arizona Gov.
Katie Hobbs, a Democrat, had also urged the Commerce Department to leave the current tomato agreement in place.In a letter sent to Lutnick last week, the U.S. Chamber of Commerce and 30 other business groups said U.S. companies employ 50,000 workers and generate $8.3 billion in economic benefits moving tomatoes from Mexico into communities across the country.
“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 against other commodities and crops that could create further hardship for U.S. businesses and consumers,” the letter said.
——Associated Press journalist Megan Janetsky contributed to this report from Mexico City.
