Starting mid-July, tomatoes imported from Mexico will incur a 17.09% levy as the U.S. administration withdraws from a longstanding trade agreement. This move aims to protect domestic tomato growers, particularly in Florida, a key tomato-producing state. However, industry stakeholders express concerns over potential repercussions, given that approximately 65% of tomatoes consumed in the U.S. are imported from Mexico, including popular varieties like cherry and vine-ripened tomatoes.
Skip Hulett from NatureSweet, a Texas-based company with substantial operations in Mexico, remarked, "Consumers will be left with fewer choices." Retail and restaurant associations oppose the duties, fearing they may restrict year-round access to diverse tomato varieties, which have become staple offerings in stores.
Florida growers argue the duties will level the competitive playing field, asserting that U.S. crops match Mexican tomatoes in variety and taste. Tony DiMare of DiMare Inc. commented, "Competition is all good as long as it's fair."
Mexico remains the largest tomato supplier to the U.S., with imports increasing 176% from 2000 to 2023, now constituting over $3 billion of the market. Florida's tomato industry has seen a decline, with acreage dropping from 25,004.5 hectares (61,800 acres) in 1990 to 9,307.8 hectares (23,000 acres) today. The North American Free Trade Agreement facilitated this market shift, with Mexican producers investing heavily in greenhouse technology, which favors specialty tomatoes.
Importers and multinational growers emphasize consumer preference for greenhouse-grown small and sweet varieties over Florida's traditionally outdoor-grown, round tomatoes. Lance Jungmeyer of the Fresh Produce Association of the Americas stated, "The market has said, well, they don't really want that tomato."
The U.S. Commerce Department justifies the new duty as necessary to counteract unfair Mexican pricing practices. The Mexican government, meanwhile, seeks to renegotiate the agreement and has suggested retaliatory measures, such as taxing U.S. meat exports.
Mexican exporters and companies like NatureSweet anticipate substantial financial impacts from the tariff, potentially leading to higher consumer prices. The average retail price of tomatoes in 2023 was $4.23 per kilogram, with Mexican growers receiving less than a third of this amount.
Source: The Spokesman-Review