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Yomiuri Shimbun
5 days ago
- Business
- Yomiuri Shimbun
US Imposes a 17% Duty on Fresh Mexican Tomatoes in Hopes of Boosting Domestic Production
The U.S. government said Monday it is immediately placing a 17% duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff. Proponents said the import tax will help rebuild the shrinking U.S. tomato industry and ensure that produce eaten in the U.S. is also grown there. Mexico currently supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange. Robert Guenther, the trade group's executive vice president, said the duty was 'an enormous victory for American tomato farmers and American agriculture.' But opponents said the import tax will make tomatoes more expensive for U.S. consumers. Mexico's Economic Secretary Marcelo Ebrard said the government would continue looking for a way to once again suspend the tariff, part of ongoing negotiations between the two trading partners. In a statement Monday, he wrote that the move would 'only affect the pockets of American consumers. 'It's unfair and against not only Mexican producers, but on the American industry. The ground that Mexican fresh tomatoes has gained in the U.S. is because of the quality of the product, not from unfair practices,' he wrote. Mexican greenhouses specialize in vine-ripened tomatoes, while Florida tomatoes are typically grown in fields and picked green. Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University, said U.S. retail prices for tomatoes will likely rise around 8.5% with a 17% duty. Jacob Jensen, a trade policy analyst at the American Action Forum, a right-leaning policy institute, said areas with a higher reliance on Mexican tomatoes could see price increases close to 10%, since it will be more difficult to replace that supply, while other parts of the U.S. could see price increases closer to 6%. '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, which represents importers of Mexican tomatoes. The duty stems from a longstanding U.S. complaint about Mexico's tomato exports and is separate from the 30% base tariff on products made in Mexico and the European Union that President Donald Trump announced Saturday. The Commerce Department said in late April that it was withdrawing from a deal it first reached with Mexico in 2019 to settle allegations the country was exporting tomatoes to the U.S. at artificially low prices, a practice known as dumping. As part of the deal, Mexico had to sell its tomatoes at a minimum price and abide by other rules. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties. In announcing its withdrawal from the Tomato Suspension Agreement, the Commerce Department said it had been 'flooded with comments' from U.S. tomato growers who wanted better protection from Mexican goods. '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,' Commerce Secretary Howard Lutnick said in a statement. 'This rule change is in line with President Trump's trade policies and approach with Mexico.' But others, including the U.S. Chamber of Commerce and the National Restaurant Association, had called on the Commerce Department to reach an agreement with Mexico. Texas Gov. Greg Abbott, a Republican, and Arizona Gov. Katie Hobbs, a Democrat, had also urged the Commerce Department to leave the current tomato agreement in place. In a letter sent to Lutnick last week, the U.S. Chamber of Commerce and 30 other business groups said U.S. companies employ 50,000 workers and generate $8.3 billion in economic benefits moving tomatoes from Mexico into communities across the country. 'We are concerned that withdrawing from the agreement — at a time when the business community is already navigating significant trade uncertainty — could lead to retaliatory actions by our trading partners against other commodities and crops that could create further hardship for U.S. businesses and consumers,' the letter said.
Yahoo
5 days ago
- Business
- Yahoo
US imposes a 17% duty on fresh Mexican tomatoes in hopes of boosting domestic production
The U.S. government said Monday it is immediately placing a 17% duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff. Proponents said the import tax will help rebuild the shrinking U.S. tomato industry and ensure that produce eaten in the U.S. is also grown there. Mexico currently supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange. Robert Guenther, the trade group's executive vice president, said the duty was 'an enormous victory for American tomato farmers and American agriculture." But opponents said the import tax will make tomatoes more expensive for U.S. consumers. Mexico's Economic Secretary Marcelo Ebrard said the government would continue looking for a way to once again suspend the tariff, part of ongoing negotiations between the two trading partners. In a statement Monday, he wrote that the move would "only affect the pockets of American consumers. 'It's unfair and against not only Mexican producers, but on the American industry. The ground that Mexican fresh tomatoes has gained in the U.S. is because of the quality of the product, not from unfair practices," he wrote. Mexican greenhouses specialize in vine-ripened tomatoes, while Florida tomatoes are typically grown in fields and picked green. Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University, said U.S. retail prices for tomatoes will likely rise around 8.5% with a 17% duty. Jacob Jensen, a trade policy analyst at the American Action Forum, a right-leaning policy institute, said areas with a higher reliance on Mexican tomatoes could see price increases close to 10%, since it will be more difficult to replace that supply, while other parts of the U.S. could see price increases closer to 6%. '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, which represents importers of Mexican tomatoes. The duty stems from a longstanding U.S. complaint about Mexico's tomato exports and is separate from the 30% base tariff on products made in Mexico and the European Union that President Donald Trump announced Saturday. The Commerce Department said in late April that it was withdrawing from a deal it first reached with Mexico in 2019 to settle allegations the country was exporting tomatoes to the U.S. at artificially low prices, a practice known as dumping. As part of the deal, Mexico had to sell its tomatoes at a minimum price and abide by other rules. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties. In announcing its withdrawal from the Tomato Suspension Agreement, the Commerce Department said it had been 'flooded with comments' from U.S. tomato growers who wanted better protection from Mexican goods. '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,' Commerce Secretary Howard Lutnick said in a statement. 'This rule change is in line with President Trump's trade policies and approach with Mexico.' But others, including the U.S. Chamber of Commerce and the National Restaurant Association, had called on the Commerce Department to reach an agreement with Mexico. Texas Gov. Greg Abbott, a Republican, and Arizona Gov. Katie Hobbs, a Democrat, had also urged the Commerce Department to leave the current tomato agreement in place. In a letter sent to Lutnick last week, the U.S. Chamber of Commerce and 30 other business groups said U.S. companies employ 50,000 workers and generate $8.3 billion in economic benefits moving tomatoes from Mexico into communities across the country. 'We are concerned that withdrawing from the agreement — at a time when the business community is already navigating significant trade uncertainty — could lead to retaliatory actions by our trading partners against other commodities and crops that could create further hardship for U.S. businesses and consumers,' the letter said. —— Associated Press journalist Megan Janetsky contributed to this report from Mexico City. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
5 days ago
- Business
- Time of India
Trump tariffs: US slaps 17% duty on Mexican tomato imports; commerce department calls move fair protection for farmers
Representative Image The US government on Monday announced a 17% import duty on most fresh tomatoes from Mexico, aiming to protect and revive its own domestic tomato industry. The move comes after talks with Mexican officials collapsed without reaching a new agreement to avoid the tariff. Mexico currently supplies about 70% of the US tomato market, up from just 30% two decades ago. The new duty, which took effect immediately on Monday, is expected to raise tomato prices in the US while benefiting American growers. Supporters of the move argue that it is essential to support US agriculture. Robert Guenther, executive vice president of the Florida tomato exchange, called the tariff 'an enormous victory for American tomato farmers and American agriculture.' The decision marks the end of the 2019 tomato suspension agreement between the two countries, which allowed Mexico to export tomatoes to the US under strict price rules and other conditions to avoid being accused of dumping, selling produce at artificially low prices. According to the US commerce department, the deal is being scrapped due to overwhelming complaints from American tomato producers who say they are unable to compete fairly with cheaper Mexican imports. '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,' said commerce secretary Howard Lutnick. However, critics say the duty will hurt consumers by driving up prices and reducing variety. '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. Tim Richards, an agribusiness professor at Arizona State University, estimated that the tariff could push up retail tomato prices by about 8.5 per cent. Jacob Jensen, a trade policy analyst, said that areas more dependent on Mexican tomatoes may see price jumps as high as 10 per cent, while others could experience a 6 per cent rise. Business groups have also warned of other consequences. In a letter to the commerce department, the US chamber of commerce and 30 other organisations said the move could trigger retaliation from trade partners and harm industries beyond tomatoes. 'We are concerned that withdrawing from the agreement – at a time when the business community is already navigating significant trade uncertainty – could lead to retaliatory actions by our trading partners,' the letter read. Furthermore, state leaders expressed concerns. Texas governor Greg Abbott, a Republican, and Arizona governor Katie Hobbs, a Democrat, had urged the government to preserve the agreement to avoid harming their local economies. The new policy aligns with US President Donald Trump's broader trade approach and comes shortly after his announcement of a separate 30% base tariff on goods from Mexico and the European Union. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
5 days ago
- Business
US imposes a 17% duty on Mexican tomatoes in hopes of boosting domestic production
The U.S. government said Monday it is immediately placing a 17% duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff. Proponents said the import tax will help rebuild the shrinking U.S. tomato industry and ensure that produce eaten in the U.S. is also grown there. Mexico currently supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange. Robert Guenther, the trade group's executive vice president, said the duty was 'an enormous victory for American tomato farmers and American agriculture." But opponents said the import tax will make tomatoes more expensive for U.S. consumers. Mexican greenhouses specialize in vine-ripened tomatoes, while Florida tomatoes are typically grown in fields and picked green. '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, which represents importers of Mexican tomatoes. Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University, said U.S. retail prices for tomatoes will likely rise around 8.5% with a 17% duty. Jacob Jensen, a trade policy analyst at the American Action Forum, a right-leaning policy institute, said areas with a higher reliance on Mexican tomatoes could see price increases close to 10%, since it will be more difficult to replace that supply, while other parts of the U.S. could see price increases closer to 6%. The duty stems from a longstanding U.S. complaint about Mexico's tomato exports and is separate from the 30% base tariff on products made in Mexico and the European Union that President Donald Trump announced on Saturday. The Commerce Department said in late April that it was withdrawing from a deal it first reached with Mexico in 2019 to settle allegations the country was exporting tomatoes to the U.S. at artificially low prices, a practice known as dumping. As part of the deal, Mexico had to sell its tomatoes at a minimum price and abide by other rules. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties. In announcing its withdrawal from the Tomato Suspension Agreement, the Commerce Department said it had been 'flooded with comments' from U.S. tomato growers who wanted better protection from Mexican goods. '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,' Commerce Secretary Howard Lutnick said in a statement. 'This rule change is in line with President Trump's trade policies and approach with Mexico.' But others, including the U.S. Chamber of Commerce and the National Restaurant Association, had called on the Commerce Department to reach an agreement with Mexico. Texas Gov. Greg Abbott, a Republican, and Arizona Gov. Katie Hobbs, a Democrat, had also urged the Commerce Department to leave the current tomato agreement in place. In a letter sent to Lutnick last week, the U.S. Chamber of Commerce and 30 other business groups said U.S. companies employ 50,000 workers and generate $8.3 billion in economic benefits moving tomatoes from Mexico into communities across the country. 'We are concerned that withdrawing from the agreement – at a time when the business community is already navigating significant trade uncertainty – could lead to retaliatory actions by our trading partners against other commodities and crops that could create further hardship for U.S. businesses and consumers,' the letter said.
Los Angeles Times
04-05-2025
- Business
- Los Angeles Times
Amid Cinco de Mayo celebrations, a tax on Mexican tomatoes looms
Guacamole has been spared from tariffs for now. But salsa may not be so lucky. While President Trump put threatened tariffs on Mexican avocados on pause, the U.S. government plans to put a nearly 21% duty on fresh Mexican tomatoes starting July 14. A duty — like a tariff — is a tax on imports, and this one would affect the 4 billion pounds of tomatoes the U.S. imports from Mexico each year. Proponents say the import tax will help rebuild the shrinking U.S. tomato industry and ensure the produce eaten in the U.S. is also grown there. Mexico supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange. 'Unless we even the playing field in terms of fair pricing, you're not going to have a domestic industry for fresh tomatoes in the very near future,' said Robert Guenther, the trade group's executive vice president. Florida and California are the top U.S. producers of tomatoes, but most of California's crop is turned into sauces and other products. Opponents say the duty will make fresh tomatoes more expensive for U.S. buyers. NatureSweet, a San Antonio-based company that grows tomatoes in Mexico as well as the U.S., said it will be paying millions of dollars each month in duties if the decision isn't reversed. 'We will look for ways to adapt or streamline our operations, but the truth is, we are always doing that so we run an efficient business already,' said Skip Hulett, NatureSweet's chief legal officer. 'Produce is not a large-margin business. We're determining what portion of the cost we could absorb, but these added costs will most certainly need to be passed on to the consumer.' Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University, expects U.S. retail prices for tomatoes to rise by about 10.5% if the duty goes through. Mexico's government said last month it was convinced it could negotiate over the issue. But if the tomato tax takes effect, Mexican President Claudia Sheinbaum has hinted her country may impose duties on chicken and pork legs imported from the U.S. The tug-of-war over tomatoes has a long history. In 1996, shortly after the North American Free Trade Agreement went into effect, the U.S. Department of Commerce investigated allegations that Mexico was exporting tomatoes to the U.S. at artificially low prices, a practice known as dumping. The U.S. government agreed to suspend the investigation if Mexico met certain rules, including selling its tomatoes at a minimum price. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties. But last month, the Commerce Department announced its withdrawal from the latest agreement, saying it had been 'flooded with comments' from U.S. tomato growers who want better protection from Mexican imports. Guenther, of the Florida Tomato Exchange, said that even though Mexican exporters are required to charge a minimum price, shipments are only spot-checked, so exporters can get around that. But more generally, Mexico hurts the U.S. industry because it costs 40% to 50% less to grow tomatoes there, Guenther said. Land is cheaper, labor is cheaper, and inputs such as seeds and fertilizer cost less, he said. Tomatoes are a labor-intensive crop, Guenther said, and the U.S. industry typically relies on immigrant workers through the H-2A visa program. That program required farmers to pay workers an average of $16.98 per hour last year, an amount that has jumped as labor has become harder to find. Richards estimates that workers on Mexican tomato farms earn about one-tenth that rate. NatureSweet acknowledges that it's more cost-effective to grow tomatoes in Mexico, but says climate is one of the biggest reasons. The company's Mexican greenhouses don't need lighting, heating or cooling systems because of the year-round weather conditions. 'You can relocate some industries, but you can't relocate climate agriculture,' Hulett said. Lance Jungmeyer, the president of the Fresh Produce Assn. of the Americas, which represents importers of Mexican tomatoes, said Florida doesn't produce the vine-ripened tomatoes that U.S. consumers increasingly favor. Florida tomatoes are picked when they're green and shipped to warehouses to ripen, he said. 'Florida doesn't grow the kinds of specialty tomatoes that have taken off, but they want to get protection,' Jungmeyer said. 'Their market share is dropping for reasons of their own choice.' Guenther disagrees. 'If you put a Florida tomato up against a Mexican tomato, I think it would do very well in [a] taste test,' he said. Adrian Burciaga, co-owner of Don Artemio, an upscale Mexican restaurant in Fort Worth, said he wouldn't want to switch to a U.S. producer. He compares it to fine wine; if he wants a good Cabernet Sauvignon, he gets it from Napa, Calif. If he wants a good tomato that reminds him of his childhood, he gets it from Mexico. 'We know the flavors they are going to bring to the salsas and moles. We don't want to compromise flavors,' Burciaga said. Burciaga said his restaurant uses 300 to 400 pounds of Roma tomatoes from Mexico every week. He currently pays $19 for a 25-pound crate of tomatoes. He doesn't relish paying the additional cost, but he feels he has no choice. Burciaga said the tomato duty — and the threat of Trump implementing the paused 25% tariff on many other products from Mexico — are making it difficult to run his business. 'The uncertainty part concerns us. A small or medium restaurant budgets things out. We know in advance that in six months things will increase, so we're able to adjust,' he said. 'But we don't know these things in advance. How do you plan and how do you react?' Durbin writes for the Associated Press. AP writer Maria Verza in Mexico City contributed to this report.
