Key Takeaways
• On July 15, 2025, the U.S. imposed a 17.09% tariff on most fresh Mexican tomatoes.
• Mexico supplies 70% of U.S. tomatoes, worth about $3 billion annually.
• Tariff expected to raise U.S. tomato prices by 6% to 10%, reversing recent declines.
On July 15, 2025, the United States 🇺🇸 government under President Trump imposed a 17.09% tariff on most fresh Mexican tomatoes. This sudden move, announced by the U.S. Department of Commerce, marks a major change in the long-standing trade relationship between the United States 🇺🇸 and Mexico 🇲🇽. The decision comes after the U.S. withdrew from the 2019 Tomato Suspension Agreement, a deal that had kept tomato trade between the two countries stable for years. The new tariff is already affecting prices, trade flows, and the lives of farmers, businesses, and consumers on both sides of the border.
Why Did the U.S. Impose the Tariff?
The main reason for the new 17.09% tariff is the U.S. government’s claim that Mexican tomato exporters have been selling tomatoes in the United States 🇺🇸 at prices lower than what they charge at home—a practice called “dumping.” U.S. tomato growers, especially those in Florida and other southern states, have complained for years that this makes it hard for them to compete. In April 2025, the Commerce Department said it planned to leave the Tomato Suspension Agreement, which had paused an earlier investigation into dumping and set minimum prices for Mexican tomatoes.
When talks between U.S. and Mexican officials failed to produce a new deal, the U.S. moved forward with the tariff. Commerce Secretary Howard Lutnick explained, “For far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today.” The Florida Tomato Exchange, which represents many U.S. growers, called the move “an enormous victory for American tomato farmers and American agriculture.”
How Big Is the U.S.-Mexico Tomato Trade?
The United States 🇺🇸 relies heavily on fresh Mexican tomatoes. Mexico supplies about 70% of the U.S. tomato market, a huge jump from just 30% two decades ago. Each year, Mexican tomato exports to the United States 🇺🇸 are worth about $3 billion. These tomatoes include many types—Roma, grape, tomatoes on the vine, and cocktail tomatoes—that are popular with U.S. shoppers.
The 2019 Tomato Suspension Agreement had helped keep this trade flowing smoothly. It required Mexican exporters to follow certain rules, like selling at or above a set minimum price, to avoid unfair competition. The end of this agreement and the start of the new tariff have created uncertainty for everyone involved.
Immediate Impact on Prices and Supply
Experts warn that the 17.09% tariff will quickly push up tomato prices in the United States 🇺🇸. Tim Richards, an agribusiness professor at Arizona State University, predicts that retail tomato prices could rise by 8.5%. Other experts estimate increases between 6% and 10%, with the highest jumps in areas that depend most on Mexican imports.
This comes after a year in which tomato prices had actually dropped—falling 6.8% from May 2024 to May 2025. Now, with the tariff in place, that trend is expected to reverse. Shoppers may soon notice higher prices and fewer choices, especially for specialty tomatoes that are mostly grown in Mexico 🇲🇽.
Who Is Affected by the Tariff?
The new tariff touches many groups:
- U.S. Consumers: Will likely pay more for tomatoes and may see fewer varieties in stores.
- U.S. Tomato Growers: Stand to benefit from less competition, as the tariff could make Mexican tomatoes more expensive and give domestic growers a better chance to sell their crops.
- Mexican Exporters: Face a sudden drop in demand from their biggest market, threatening jobs and income for thousands of workers.
- U.S. Businesses: Companies that import, distribute, or use fresh Mexican tomatoes in their products will see higher costs and possible supply chain problems.
Reactions from Stakeholders
The U.S. government and domestic tomato industry have welcomed the tariff. The Florida Tomato Exchange said it would help level the playing field for American farmers. Commerce Secretary Lutnick stressed that the move was needed to protect U.S. agriculture from unfair trade.
On the other hand, the Mexican government strongly criticized the decision. Mexico’s ministries of economy and agriculture called the tariff “unfair” and promised to help Mexican producers find new markets and push for a new agreement to suspend the duty. Five major Mexican agriculture associations also spoke out, saying that no other country can replace Mexican tomatoes in the U.S. market and that they are committed to finding solutions.
The U.S. business community, including the U.S. Chamber of Commerce and 30 other organizations, warned that the tariff could backfire. They fear that Mexico 🇲🇽 or other trading partners might respond with their own tariffs on U.S. goods, hurting American businesses in other sectors.
State leaders in Texas and Arizona, both of which have strong ties to Mexican agriculture, urged the federal government to keep the agreement in place to protect their states’ economies. Texas Governor Greg Abbott and Arizona Governor Katie Hobbs both spoke out about the risks to local jobs and businesses.
Background: The Tomato Suspension Agreement
The 2019 Tomato Suspension Agreement was a deal between the United States 🇺🇸 and Mexico 🇲🇽 that paused an earlier investigation into whether Mexican tomatoes were being dumped in the U.S. market. The agreement set minimum prices and other rules for Mexican exporters, helping to avoid trade fights and keep the market stable. It was renewed several times, showing that both countries wanted to avoid a full-blown trade war over tomatoes.
Ending the agreement and imposing the 17.09% tariff marks a big change. It signals a tougher U.S. stance on trade, especially under President Trump’s broader policy of using tariffs to protect American industries. In fact, President Trump has also threatened a 30% tariff on all Mexican imports starting August 1, 2025, if broader trade talks do not succeed.
What Happens Next?
Both the United States 🇺🇸 and Mexico 🇲🇽 say they are open to more talks, but so far, no new agreement has been reached. In the meantime, the 17.09% tariff remains in place, and its effects are already being felt.
- For U.S. Consumers: Expect to pay more for tomatoes at the grocery store. Some types of tomatoes may become harder to find, especially in regions that rely most on Mexican imports.
- For U.S. Growers: The tariff could help them sell more tomatoes at better prices, at least in the short term. However, if prices rise too much, consumers may buy fewer tomatoes or switch to other produce.
- For Mexican Exporters: The loss of access to the U.S. market is a major blow. The Mexican government is working to help growers find new buyers in other countries, but replacing the U.S. market will not be easy.
- For U.S. Businesses: Companies that depend on fresh Mexican tomatoes, from importers to restaurants, will need to adjust. Some may try to source more tomatoes from U.S. growers or other countries, but this could take time and may not fully make up for the loss.
Industry and Expert Views
Supporters of the tariff argue that it is needed to protect U.S. farmers from unfair competition. They say that Mexican exporters have been able to sell tomatoes at lower prices because of government support and lower labor costs, making it hard for American growers to survive.
Critics, however, warn that the tariff will hurt U.S. consumers by raising prices and reducing choice. They also worry about the risk of a trade war, with Mexico 🇲🇽 possibly putting tariffs on U.S. exports in response. This could hurt other American industries, from agriculture to manufacturing.
As reported by VisaVerge.com, the end of the Tomato Suspension Agreement and the start of the new tariff have created a lot of uncertainty for everyone involved. Both sides are watching closely to see how the market adjusts and whether a new deal can be reached.
Procedural Details and Legal Options
The 17.09% duty applies to most fresh tomatoes imported from Mexico 🇲🇽, starting immediately on July 15, 2025. The U.S. Department of Commerce is in charge of enforcing the tariff and making sure importers pay the correct amount.
Mexican producers and U.S. importers who believe the tariff is unfair can ask for an administrative review or try to challenge the duty in court. However, unless a new agreement is reached, the tariff will stay in place.
For official updates and more information about the tariff and related trade policies, readers can visit the U.S. Department of Commerce’s International Trade Administration.
Possible Solutions and Next Steps
While the situation is tense, there are steps that both governments and industry groups can take to reduce the impact:
- Resume Negotiations: Both sides have said they are willing to keep talking. A new suspension agreement, with updated rules and prices, could help restore stability to the market.
- Support for Affected Groups: The Mexican government is already working to help growers find new markets. The U.S. government could also consider support for businesses and consumers affected by higher prices.
- Market Diversification: Mexican exporters may look to sell more tomatoes to other countries, though this will take time and may not fully replace the U.S. market.
- Consumer Awareness: U.S. shoppers can look for locally grown tomatoes or try different types of produce if prices rise too much.
Broader Trade Policy Context
The tomato tariff is part of a larger trend in U.S. trade policy under President Trump. In 2025, the administration has imposed several new tariffs on trading partners, arguing that these moves are needed to protect American jobs and industries. The threat of a 30% tariff on all Mexican imports shows that the United States 🇺🇸 is willing to take strong action if it believes its interests are at risk.
However, trade experts warn that tariffs can have unintended effects. They can raise prices for consumers, disrupt supply chains, and lead to retaliation from other countries. In the case of tomatoes, the close ties between the United States 🇺🇸 and Mexico 🇲🇽 mean that any trade fight will have big impacts on both sides of the border.
What Should Stakeholders Do Now?
- Consumers: Watch for price changes and consider buying local or in-season produce to save money.
- Growers: Stay informed about policy changes and look for new opportunities in the changing market.
- Importers and Businesses: Review supply chains, talk to suppliers, and plan for possible disruptions.
- Policymakers: Keep lines of communication open and look for ways to reach a fair agreement that supports both domestic producers and consumers.
Conclusion
The 17.09% tariff on fresh Mexican tomatoes is already changing the way tomatoes are traded, sold, and eaten in the United States 🇺🇸. While it may help U.S. growers in the short term, it also brings higher prices and less choice for consumers, and it puts pressure on Mexican exporters. The end of the Tomato Suspension Agreement has made the market more uncertain, and both sides are looking for solutions.
As the situation develops, it is important for everyone—farmers, businesses, and shoppers—to stay informed and be ready to adapt. For the latest updates, check official sources like the U.S. Department of Commerce and the Mexican Ministry of Economy. The hope is that with continued talks and cooperation, a new agreement can be reached that supports fair trade and benefits both countries.
Learn Today
Tariff → A tax imposed on imported goods to protect domestic industries or generate revenue.
Dumping → Selling products abroad at unfairly low prices to undercut competitors and gain market share.
Tomato Suspension Agreement → A 2019 trade pact between the U.S. and Mexico setting minimum prices on Mexican tomatoes.
Minimum Price → The lowest price exporters can charge to avoid unfair competition under the agreement.
Retaliation → Actions taken by a country to punish another, such as imposing tariffs in response.
This Article in a Nutshell
The U.S. introduced a 17.09% tariff on fresh Mexican tomatoes after ending the 2019 Tomato Suspension Agreement, disrupting a $3 billion trade and escalating tensions.
— By VisaVerge.com
