"Unfair practices end today": US announced a new 17% tariff on Mexican tomatoes

The United States announced Monday the imposition of a new 17% tariff on most fresh tomatoes imported from Mexico, following the failure of diplomatic negotiations with the neighboring country to avoid the measure.

The Department of Commerce confirmed that the country will formally abandon the so-called Tomato Suspension Agreement, signed by Washington in 2019, which established a minimum price and other conditions to prevent 'dumping', that is, the export of fresh tomatoes at artificially low prices, something the current Trump Administration considers unfair competition.

According to the agency, the decision follows a wave of complaints from US producers, who accuse Mexican producers of competing with favorable and unfair rules.

In fact, part of the local producers celebrated the measure.

"It's a an enormous victory for American tomato farmers and American agriculture," said Robert Guenther, executive vice president of the Florida Tomato Exchange, one of the organizations that pushed hardest for the tariffs.

While the Trump Administration and domestic growers say the measure will improve prices for end consumers, Mexico currently supplies about 70% of the U.S. tomato market, a quantum leap from the 30% it accounted for two decades ago. Therefore, the new tariff, right off the bat, could cause a significant increase in the prices of this product, warned economic experts.

In fact, alarm bells are already ringing in different sectors. Businessmen, importers and associations have warned that it is precisely the end consumers who could be the main victims. Tim Richards, professor of agribusiness at Arizona State University, said that the retail price of tomatoes could increase by an average of 8.5%, although in some regions more dependent on Mexican tomatoes it could even reach 10%.

"As an industry, we are saddened that American consumers will have to pay a tomato tax, or duty, for a reduced selection of the tomatoes they prefer, such as tomatoes on the vine, grape tomatoes, Romas, cocktail tomatoes and other specialty varieties," said Lance Jungmeyer, president of the Fresh Produce Association of the Americas, representing importers of Mexican tomatoes.

The withdrawal from the agreement signed in 2019 was also criticized by the U.S. Chamber of Commerce and some 30 business organizations, which warned in a letter to Commerce Secretary Howard Lutnick that breaking the pact with Mexico could trigger trade retaliation by other countries, affecting more agricultural products.

According to the signatories, some 50,000 people work in companies that move tomatoes from Mexico to communities across the country, producing more than $8.3 billion in economic benefits.

However, the secretary defended the measure: "Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today."

The measure is part of the growing trade tension between Washington and Mexico City, aligning with the protectionist policy pushed by President Donald Trump, who over the weekend had already announced a 30% base tariff on manufactured goods from Mexico and the European Union.