The Fresh Produce Association of the Americas has warned that tomato prices are likely to increase following the Trump administration’s decision to terminate a tomato import agreement with Mexico. This decision will result in tariffs being imposed on Mexican tomatoes, potentially leading to higher costs for consumers. The Department of Commerce has confirmed that the agreement will end in July, with a 20.9 percent tariff on Mexican tomato imports. This move is expected to impact U.S. tomato prices as the products are grown year-round in Mexico at lower costs. Industry experts anticipate that consumers will bear the brunt of the price increase.
In response to the termination of the tomato import agreement, retailers and restaurants may need to adjust their pricing and menu offerings due to the expected rise in tomato prices. Lance Jungmeyer, president of the Fresh Produce Association of the Americas, emphasized that the price increase will need to be passed down to consumers. He noted that companies with year-round contracts may need to renegotiate prices to accommodate the cost increase. The phased implementation of tariffs could lead to a gradual price hike, making customers question the rising cost of tomatoes. Decreased production volume in the future could further contribute to higher prices.
The Trump administration’s decision to end the tomato import agreement has drawn criticism from the Border Trade Alliance and other industry stakeholders. More than 400 businesses have voiced support for maintaining the agreement, highlighting the economic impact and job losses that could result from the withdrawal. Britton Mullen, president of the Border Trade Alliance, expressed concerns about the impact on trade between the U.S. and Mexico, citing the importance of the agreement in facilitating tomato exports. The move to withdraw from the agreement could lead to higher prices and disrupt trade relationships.
If no new agreement is reached before July, tariffs on Mexican tomatoes will take effect, potentially leading to increased prices for consumers. While American tomato growers, particularly those in Florida, may benefit from the tariffs, the overall impact on consumers remains uncertain. The termination of the tomato import agreement is part of the Trump administration’s broader strategy to impose tariffs on imports from other countries, which has sparked backlash from various industries. The decision could provoke consumer anger similar to the response to rising egg prices, prompting calls for a reconsideration of the policy’s impact on trade and commerce.
