Amid Cinco de Mayo celebrations, a tax on Mexican tomatoes looms

Tariffs have spared guacamole, but salsa may not be as lucky. While the U.S. has paused threatened tariffs on Mexican avocados, a nearly 21% duty on fresh Mexican tomatoes is set to begin on July 14. This duty, similar to a tariff, will affect the 4 billion pounds of tomatoes imported from Mexico annually.

Advocates believe the duty will help revitalize the declining U.S. tomato industry and ensure that domestically grown produce is consumed in the U.S. Currently, Mexico supplies about 70% of the U.S. tomato market, compared to 30% two decades ago, according to the Florida Tomato Exchange.

Robert Guenther, the executive vice president of the Florida Tomato Exchange, emphasized the need for fair pricing to sustain a domestic tomato industry. However, opponents argue that the duty will raise prices for U.S. consumers. NatureSweet, a company with operations in Mexico and the U.S., expressed concerns about the financial impact of the duties.

Tim Richards, a professor at Arizona State University, predicts a 10.5% increase in U.S. retail tomato prices if the tariffs are imposed. Mexico has hinted at retaliatory measures against U.S. chicken and pork imports if the duty takes effect.

The dispute over tomatoes dates back to 1996, following the implementation of the North American Free Trade Agreement. The U.S. Department of Commerce investigated Mexico’s alleged practice of selling tomatoes at artificially low prices, leading to trade agreements that have undergone periodic reviews.

The recent withdrawal from the agreement by the Commerce Department has reignited tensions between the U.S. and Mexico. Guenther argued that Mexico’s cost advantages in tomato production pose a threat to the U.S. industry. NatureSweet highlighted the climate benefits of Mexican tomato cultivation.

The Fresh Produce Association of the Americas emphasized consumer preferences for Mexican tomatoes and criticized Florida’s lack of specialty tomato varieties. Despite the challenges posed by tariffs, some businesses like Don Artemio, an upscale Mexican restaurant in Texas, continue to rely on Mexican tomato imports for their distinct flavors.