US Imposes 17% Tariff on Mexican Tomatoes: What It Means for Consumers

The US government has implemented a 17% tariff on fresh tomatoes imported from Mexico, a move that has sparked debate among industry stakeholders. Proponents believe this will bolster the struggling US tomato industry, while critics warn of rising prices for consumers. The tariff follows the withdrawal from a previous trade agreement aimed at regulating tomato exports from Mexico. This decision has raised concerns about potential retaliatory actions from trading partners and its impact on the broader economy. As the situation unfolds, the implications for both consumers and businesses remain to be seen.

By Narendra Chaudhary Jul 15, 2025, 12:08 IST

New Tariff on Mexican Tomatoes Announced

On Monday, the US government announced a 17% tariff on most fresh tomatoes imported from Mexico, following unsuccessful negotiations to prevent this measure. Advocates of the tariff argue that it will aid in revitalizing the declining US tomato industry and promote domestic production.

Currently, Mexico accounts for approximately 70% of the tomatoes consumed in the US, a significant increase from 30% two decades ago, as reported by the Florida Tomato Exchange.

However, critics, including US companies that cultivate tomatoes in Mexico, warn that this tariff will lead to higher prices for fresh tomatoes in the US market.

According to Tim Richards, a professor at Arizona State University's Morrison School of Agribusiness, the retail price of tomatoes in the US could rise by about 8.5% due to this new duty.

This tariff is a result of ongoing US concerns regarding Mexico's tomato exports and is distinct from the 30% base tariff on products from Mexico and the European Union announced by former President Donald Trump.

In late April, the Commerce Department decided to withdraw from a 2019 agreement with Mexico that aimed to address allegations of dumping, where tomatoes were sold at artificially low prices.

Under the previous agreement, Mexico was required to sell tomatoes at a minimum price and adhere to specific regulations. Although the deal underwent periodic reviews, both countries had consistently managed to avoid imposing duties.

The Commerce Department's withdrawal from the Tomato Suspension Agreement was influenced by numerous comments from US tomato growers seeking enhanced protection against Mexican imports.

Conversely, organizations such as the US Chamber of Commerce and the National Restaurant Association urged the Commerce Department to negotiate a new agreement with Mexico.

In a recent letter to Commerce Secretary Howard Lutnick, the Chamber of Commerce and 30 other business groups highlighted that US companies support 50,000 jobs and contribute $8.3 billion to the economy by facilitating the movement of tomatoes from Mexico into various communities.

The letter expressed concerns that withdrawing from the agreement amidst existing trade uncertainties could provoke retaliatory measures from trading partners, adversely affecting other commodities and crops, thereby creating additional challenges for US businesses and consumers.