Gallego presses Lutnick on administration's plan to slap 21 percent tariff on Mexican tomatoes
Gallego argued that the 2019 Tomato Suspension Agreement has set a 'fair price for the sale' of tomatoes that are imported from Mexico for close to three decades and has allowed U.S. consumers to have access to 'fresh tomatoes at a low, stable price all year-round.'
The Arizona senator said that as of April this year, the various departments that oversee the agreement have found that more than 99.99 percent of tomato shipments from Mexico are in compliance with the 2019 deal.
'This agreement is particularly necessary to meet the growing consumer demand for tomatoes and supplement domestic supply in winter months. The result of terminating this agreement will be higher prices for American families, fewer options at the grocery store, and fewer American jobs. Indeed, studies show that families could see tomato prices rise by an average of 50 percent if your Department does not reverse course,' Gallego said in a two-page letter to Commerce Department Secretary Howard Lutnick, which was shared with The Hill.
'And, as Mexican growers see reduced demand in the United States, they will likely choose to grow more profitable crops and limit their tomato supply, limiting variety for American consumers in grocery stores and possibly causing shortages,' the Democratic lawmaker added.
The Hill has reached out to the Commerce Department for comment.
The Commerce Department's plan to slap a 21 percent tariff on most tomatoes coming from Mexico will take effect July 14, when the U.S. is set to withdraw from the 2019 trade agreement with Mexico.
The department said on Monday that 'this action will allow U.S. tomato growers to compete fairly in the marketplace.'
President Trump's administration forged a deal with Mexico's tomato producers in 2019 to avert imposing a proposed tariff on the commodity. The agreement incorporated various provisions, including inspections to ensure low-quality tomatoes were not imported into the U.S.
Trump threatened to pull back from the deal after tomato growers in the U.S. complained that Mexico was suppressing prices of the crop. Mexico imported more than $2.7 billion in tomatoes from Mexico in 2023.
In the letter, Gallego said the agreement is paramount for Arizona border communities, and by withdrawing from the agreement, the administration would put 'these good-paying jobs at risk.'
The Arizona senator said that he supports expanding the domestic agriculture industry and always ensuring that U.S. growers are protected, but he emphasized that trade policies 'must be rational.'
'The United States simply does not have the climate to produce many of the tomato varieties produced in Mexico in sufficient locations to meet the consumer demand in the United States year-round,' Gallego wrote in the letter to Lutnick. 'Tomato imports from Mexico also serve as an important shock-absorber that protects families from massive price fluctuations and shortages when the American market is not able to produce tomatoes.'
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