Latest news with #2019TomatoSuspensionAgreement
India Today
14-07-2025
- Business
- India Today
US imposes 17% tariff on Mexican tomatoes, sparking price concerns
In a move likely to heat up produce prices and trade tensions, the US government announced on Monday it is imposing a 17% tariff on most fresh Mexican tomatoes after talks with Mexico collapsed without a new decision marks the formal end of the 2019 Tomato Suspension Agreement, which had allowed tomatoes from Mexico to be imported tariff-free as long as exporters followed minimum pricing rules to avoid dumping allegations. The Commerce Department cited pressure from US growers as a key reason for the shift, saying it had been 'flooded with comments' urging stronger tariff will help rebuild the shrinking US tomato industry,' said the Florida Tomato Exchange, noting that Mexico now supplies 70% of US tomato consumption — up from 30% just 20 years ago. However, US businesses that grow tomatoes in Mexico or rely on imports warned that the new duty could drive up grocery bills and disrupt supply a letter sent last week to Commerce Secretary Howard Lutnick, the Chamber of Commerce and 30 other business groups said US 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 say the impact on consumers will be felt quickly. 'Retail prices for tomatoes in the US will likely rise around 8.5% with a 17% duty,' predicted Tim Richards, agribusiness professor at Arizona State new tariff is separate from the broader 30% base tariff on products from Mexico and the European Union that President Donald Trump announced Saturday as part of his wider trade reset agenda.- EndsInputs from Associated PressTune InMust Watch
Yahoo
17-04-2025
- Business
- Yahoo
Gallego presses Lutnick on administration's plan to slap 21 percent tariff on Mexican tomatoes
Sen. Ruben Gallego (D-Ariz.) is expressing concern over the Trump administration's intent to impose a nearly 21 percent tariff on most Mexican tomatoes coming into the country by withdrawing from a 2019 trade agreement, warning that it will lead to higher prices and fewer options at grocery stores. 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.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
16-04-2025
- Business
- The Hill
Gallego presses Lutnick over administration's plan to slap 21 percent tariff on Mexican tomatoes
Sen. Ruben Gallego (D-Ariz.) is expressing concern over President Trump's administration's intent to impose a nearly 21 percent tariff on most Mexican tomatoes coming into the country by withdrawing from a 2019 trade agreement, warning that it will lead to higher prices and fewer options at grocery stores. 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 is effective July 14, when the U.S. withdraws 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.' 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 over 2.7 billion worth of 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 the U.S.'s growers are protected, but 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.'
