The United States has slapped a 17% tariff on Mexican tomato imports, ending a trade pact that had protected exporters from such duties for decades.
The move, announced by Commerce Secretary Howard Lutnick, takes effect immediately and could spark a fresh wave of price hikes at grocery stores and restaurants across the country.
“For far too long, our farmers have been crushed by unfair trade practices that undercut tomato pricing,” Lutnick said in a press briefing.
“This action restores fairness for American growers.”
The decision follows the U.S. government’s withdrawal from the 2019 Tomato Suspension Agreement.
That deal, one of five signed since 1996, had paused anti-dumping investigations in exchange for Mexico adhering to minimum export prices.
However, U.S. growers especially those in Florida have repeatedly accused Mexican producers of dumping tomatoes at below-market prices.
They argue that this practice severely damages domestic agriculture by flooding the market with cheaper imports.
According to the Florida Tomato Exchange, nearly 70% of tomatoes consumed in the U.S. come from Mexico.
Industry leaders claim this dominance has made it difficult for American farmers to survive.
Mexico, on the other hand, has denied all allegations of dumping.
Officials argue that the success of their tomatoes stems from quality, not price manipulation.
In a joint statement, Mexico’s economy and agriculture ministries said, “It would be impossible to replace Mexican tomatoes due to the volume of exports.”
They added that negotiations with Washington would begin soon to establish a new trade arrangement.
Meanwhile, U.S. consumers may soon feel the pinch. Analysts warn that prices for tomato-based goods like salsa, pasta sauce, and pizza toppings could rise sharply.
Restaurants and food manufacturers that rely heavily on imported tomatoes may also pass extra costs onto customers
Supporters of the tariff argue that the hike will help revive a struggling U.S. tomato sector.
“It’s time we gave our farmers a fighting chance,” said a Florida produce lobbyist. “This policy levels the playing field.”
However, critics worry the tariff could escalate broader trade tensions.
President Donald Trump, recently back in office, has already threatened a sweeping 30% tariff on all Mexican goods starting August 1.
He accused Mexico of enabling a rise in drug trafficking across North America.
Similar threats have been aimed at China, Brazil, and the EU, raising fears of a wider global trade war.