Tomatoes May See a Big Price Increase Soon—Here's Why
More specifically, the agreement, which dates back to 1996, is between the Department of Commerce and producers and exporters of fresh tomatoes that are grown in Mexico, as explained by the U.S. Department of Agriculture. This deal essentially ensured that producers and exporters will sell tomatoes at or above an "established reference price." The agreement initially stemmed from a long-time antidumping dispute.Once the agreement is terminated, the International Trade Administration expects a 20.91% tariff on "most imports of tomatoes from Mexico." The dissipation of this agreement is intended to allow "U.S. tomato growers to compete fairly in the marketplace." The Trump Administration has enforced strict U.S. trade laws since the beginning of his term, surging predicted price increases for a number of staple foods (such as bananas, shellfish, olive oil, chocolate, and nuts).
Typically, the lowest cost of tomatoes is handed to the summer months, due to increased production deriving from peak harvest times. During the winter, when production decreases, is when grocery stores usually fall victim to a higher price. However, with Mexico being the largest supplier of tomatoes to the U.S., it's likely consumers will now see an increase year-round, including the summer months.
RELATED:
The USDA's most recent forecast cites 93% of the U.S.'s tomato imports coming from Mexico. Growers are already preparing for the change, with the report stating that "producers are expected to reduce planting in the autumn-winter season in response to the U.S." With this seasonal anticipation, the amount of available agricultural work may also decrease.
Canada and Guatemala are the next biggest trade partners to the U.S. as of 2023, as reported by the World Integrated Trade Solution, but the countries still only account for a small percentage of total tomato imports.
What does this mean for your grocery store bill? Well, aside from purchasing the vegetable outright, tomatoes are a staple ingredient in so many of your everyday foods—salsas, sauces, ketchup, pizza, etc. So, should these tariffs come into full effect, your grocery receipt will begin to see a subtle price change (especially in the upcoming winter months, when the U.S. more heavily relies on imports of seasonal summer foods).Tomatoes May See a Big Price Increase Soon—Here's Why first appeared on Men's Journal on Jul 8, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
an hour ago
- Wall Street Journal
Our Man in Berlin
During Donald Trump's first term, Japan's Prime Minister Shinzo Abe surprised the world and perhaps himself by building a solid relationship with the mercurial American president. U.S.-German relations, on the other hand, went through one crisis after another. The second time around, it's the Germans who seem to be managing the relationship smoothly, while the Japanese have been disappointed. The secret to Berlin's success so far appears to lie with Chancellor Friedrich Merz and his disciplined approach to the trans-Atlantic relationship. When the Bundestag voted Mr. Merz's government into power on May 6, U.S.-German relations were not in the happiest state. In February, Vice President JD Vance met with Alice Weidel, leader of the Alternative for Germany party, or AfD. Secretary of State Marco Rubio called the German decision to classify the AfD as an extremist organization 'tyranny in disguise.' Mr. Merz deftly walked a line, firmly rejecting criticisms of German democracy while aligning Berlin with key Trump administration priorities. Committing to spending 5% of gross domestic product on defense, taking a tougher stance on immigration, and focusing attention on the dangers of Chinese mercantilism to the German economy all went down smoothly in Washington. Mr. Merz, a successful businessman, may have an easier time understanding the American president than do career politicians with less feel for the private sector. Knowing that a working relationship with Mr. Trump was a key to his success overall, the new German chancellor has tended the bilateral relationship assiduously. At his first Oval Office meeting, Mr. Merz presented the president with a gold-framed copy of Mr. Trump's grandfather's German birth certificate. Mr. Merz has refused to criticize Mr. Trump in public and has nothing but nice things to say about their telephone conversations.
Washington Post
2 hours ago
- Washington Post
Under fire by Trump over costs, Chair Powell seeks watchdog review of Fed building overhaul
WASHINGTON — Federal Reserve Chair Jerome Powell has asked an inspector general to review the cost of the central bank's building renovations that White House officials have attacked as 'ostentatious.' A spokesperson for the inspector general, an independent watchdog, confirmed the request and declined further comment. The request was previously reported by CNBC. The Fed has been renovating two of its office buildings in Washington for several years at a current cost estimate of about $2.5 billion, $700 million more than originally expected. Trump administration officials have seized on the expense and some alleged amenities in the remodeled buildings to extend their criticism of Powell, whom the president has attacked for not reducing the Fed's short-term rate. On Thursday, Russ Vought , the president's top budget advisor, said that President Donald Trump is 'extremely troubled' about the 'ostentatious overhaul' and suggested that it may be violating local building rules. The letter represented a sharp escalation in the Trump administration's efforts to gain greater control over the Fed, an independent agency charged with seeking stable prices and maximum employment. Independence from day-to-day politics has long been seen as a critical element in the Fed's ability to achieve those goals. Trump has repeatedly demanded that Powell cut the short-term interest rate that the central bank controls, in part because the president believes it will lower the government's borrowing costs. Trump and some of his officials have encouraged Powell to resign, though there is no indication he will leave before his term ends next May.
Yahoo
2 hours ago
- Yahoo
Under fire by Trump over costs, Chair Powell seeks watchdog review of Fed building overhaul
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell has asked an inspector general to review the cost of the central bank's building renovations that White House officials have attacked as 'ostentatious.' A spokesperson for the inspector general, an independent watchdog, confirmed the request and declined further comment. The request was previously reported by CNBC. The Fed has been renovating two of its office buildings in Washington for several years at a current cost estimate of about $2.5 billion, $700 million more than originally expected. Trump administration officials have seized on the expense and some alleged amenities in the remodeled buildings to extend their criticism of Powell, whom the president has attacked for not reducing the Fed's short-term rate. On Thursday, Russ Vought, the president's top budget advisor, said that President Donald Trump is 'extremely troubled" about the 'ostentatious overhaul' and suggested that it may be violating local building rules. The letter represented a sharp escalation in the Trump administration's efforts to gain greater control over the Fed, an independent agency charged with seeking stable prices and maximum employment. Independence from day-to-day politics has long been seen as a critical element in the Fed's ability to achieve those goals. Trump has repeatedly demanded that Powell cut the short-term interest rate that the central bank controls, in part because the president believes it will lower the government's borrowing costs. Trump and some of his officials have encouraged Powell to resign, though there is no indication he will leave before his term ends next May. Christopher Rugabger, The Associated Press
