The U.S. has introduced a 17% tariff on most tomatoes imported from Mexico, effective immediately. This decision follows the U.S. withdrawal from a longstanding trade agreement, citing its failure to protect American tomato growers from what they call "unfairly priced" imports. U.S. Secretary of Commerce Howard Lutnick stated that American farmers have been suffering due to these unfair practices.
Mexico, on the other hand, has rejected these accusations, asserting that their tomatoes are favored for their high quality. With about 70% of tomatoes in U.S. markets coming from Mexico, the new tariff is expected to raise prices at grocery stores and restaurants, particularly affecting items like pizza sauces and salsas.
Supporters of this tariff argue it will encourage consumers to choose domestically grown tomatoes, boosting local agriculture. However, the Mexican government warns that replacing the volume of tomatoes imported from Mexico would be impossible and is looking to negotiate a new deal. Since 1996, U.S. tomato growers have sought government intervention against perceived underpricing by Mexico, leading to various agreements over the years.
This tariff comes alongside threats from U.S. President Trump to impose a 30% tax on all Mexican goods later this summer, citing issues related to drug trafficking. With ongoing tensions about trade, other countries are also bracing for potential tariffs.
