The U.S. government said Monday it is placing a 17% duty on most fresh Mexican tomatoes, after negotiations over alleged unfair trade practices 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 United States is also grown there. But opponents, including U.S. companies that grow tomatoes in Mexico, said the tariff will make fresh tomatoes more expensive for U.S. buyers.
Mexico currently supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange.
The move comes amid a separate push by President Trump to increase tariffs on dozens of U.S. trading partners, including Mexico, which was told over the weekend to expect 30% tariffs starting in August. Secretary of Commerce Howard Lutnick said in a statement Monday that the decision on tomatoes is “in line with President Trump’s trade policies and approach with Mexico.”
“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,” Lutnick said in a statement.
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. The decision to withdraw from the Tomato Suspension Agreement was set to take effect in 90 days.
As part of the 2019 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 have always reached an agreement that avoided duties.
In announcing its withdrawal from the agreement, the Commerce Department said in late April that it had been “flooded with comments” from U.S. tomato growers who wanted better protection from Mexican imports.
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.
In a letter sent last week to Lutnick, the 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.
The lead-up to Monday’s decision drew criticism from some Democrats.
“ARIZONA, BUY YOUR TOMATOES NOW!!” Sen. Ruben Gallego, an Arizona Democrat, wrote on X last week. “Groceries are already too expensive. [Mr. Trump] needs to reverse this decision now.”
“Salsa will be pricier, shelves emptier, and groceries more expensive. Tens of thousands of jobs, including 30,000 Texans, will be at risk,” Rep. Sylvia Garcia, a Texas Democrat, wrote on X.
