Trump administration imposes 17% tariff on recent Mexican tomatoes

The Trump administration is imposing a 17% tariff on most recent Mexican tomatoes, the federal authorities mentioned Monday, ending a yearslong settlement with the U.S.’s southern neighbor over commerce practices.

The transfer comes amid a separate push by President Trump to extend tariffs on dozens of U.S. buying and selling companions, together with Mexico, which was informed over the weekend to anticipate 30% tariffs beginning in August. Critics argue the president’s tariff technique may push up shopper costs. However Secretary of Commerce Howard Lutnick mentioned in a press release Monday that the choice on tomatoes is “in keeping with President Trump’s commerce insurance policies and strategy with Mexico.”

“Mexico stays one among our best allies, however for much too lengthy our farmers have been crushed by unfair commerce practices that undercut pricing on produce like tomatoes. That ends at present,” Lutnick mentioned in a assertion.

The U.S. will get round 70% of its tomatoes from Mexico, in accordance with the Florida Tomato Trade. Roughly $3 billion price of tomatoes are exported from Mexico to the U.S. yearly, an nearly threefold soar over the past 15 years, federal knowledge exhibits.

Supporters argue the tariffs may support the home tomato business, which the Florida Tomato Trade says has been “decimated by an inflow of low-cost Mexican tomatoes.” However others warn the transfer may result in greater costs and hurt U.S. corporations that depend on imported tomatoes.

The tariffs comply with an advanced, almost three-decade-long dispute over allegations that Mexican tomato producers have been illegally promoting tomatoes to the U.S. at unfairly low costs, harming U.S. growers. The federal authorities struck a deal in 2019 — throughout Mr. Trump’s first time period — that averted “anti-dumping” duties on tomatoes in trade for Mexican producers agreeing to a minimal sale worth.

In April, the Commerce Division introduced the U.S. would exit that deal in 90 days, saying it “has failed to guard U.S. tomato growers from unfairly priced Mexican imports.” The Commerce Division mentioned it will impose 20.91% tariffs — barely greater than the 17.09% levies introduced Monday.

The Florida Tomato Trade praised the transfer in a press release Monday. The group’s government vice chairman, Robert Guenther, referred to as it “an unlimited victory for American tomato farmers and American agriculture.”

A bunch of lawmakers in Florida — which is likely one of the U.S.’s largest tomato-producing states — praised the deliberate duties in a letter to Lutnick final month. Sen. Rick Scott, a Florida Republican, referred to as the transfer “a serious victory for American growers and producers.”

However the U.S. Chamber of Commerce urged Lutnick to not exit the deal on Friday, arguing the Trump administration ought to attempt to reduce a brand new take care of Mexico as an alternative. The group mentioned “the import and sale of Mexican tomatoes generate an estimated $8.3 billion in financial advantages,” and warned withdrawing from the deal may set off retaliation from Mexico.

“Terminating the Settlement would seemingly have widespread repercussions on the U.S. economic system, affecting agriculture, warehousing, logistics, grocery, and restaurant industries,” the group mentioned in a letter to Lutnick.

The lead-up to Monday’s determination additionally drew criticism from some Democrats.

“ARIZONA, BUY YOUR TOMATOES NOW!!” Sen. Ruben Gallego, an Arizona Democrat, wrote on X final week. “Groceries are already too costly. [Mr. Trump] must reverse this determination now.”

“Salsa will likely be pricier, cabinets emptier, and groceries costlier. Tens of hundreds of jobs, together with 30,000 Texans, will likely be in danger,” Rep. Sylvia Garcia, a Texas Democrat, wrote on X.

Mr. Trump has despatched letters to dozens of U.S. buying and selling companions over the past week threatening greater tariffs beginning August, partially reinstating a number of the steep country-by-country levies that have been rolled out by the Trump administration in April, however shortly delayed for 90 days. The president argues the tariffs are mandatory to guard home jobs and proper unfair commerce practices, however many economists argue tariffs can result in sluggish financial progress and better costs.

Meals costs grew 2.9% within the 12-month interval ending in Could — greater than the nation’s general 2.4% inflation charge, however properly under mid-2022, when meals costs have been rising upwards of 10% year-over-year, in accordance with federal knowledge. The worth of tomatoes fell 6.8% from Could 2024 to Could 2025.

Federal Reserve Chair Jerome Powell informed lawmakers final month he expects tariffs to have some affect on costs. However he added: “We actually do not know the way a lot of that is going to be handed by way of the buyer. We have now to attend and see.”

The Related Press

contributed to this report.