Guacamole lovers can breathe a sigh of relief as tariffs have been put on hold, but salsa enthusiasts might not be so fortunate. President Donald Trump has suspended the threatened tariffs on Mexican avocados, yet the U.S. is set to impose a nearly 21% duty on fresh Mexican tomatoes starting July 14.
This tax on imports could affect the 4 billion pounds of tomatoes the U.S. gets from Mexico annually.
Supporters argue that the import tax will bolster the dwindling U.S. tomato industry and ensure that produce consumed in America is also grown domestically. The Florida Tomato Exchange notes that Mexico’s share of the U.S. tomato market has emerged from 30% to about 70% over the past twenty years.
“Unless we even play the 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, executive vice president of the trade group. While Florida and California lead in U.S. tomato production, most of California’s yield is in sauces and other processed forms.
Critics, however, warn that the duty will raise prices for fresh tomatoes in the U.S. NatureSweet, a San Antonio-based company that cultivates tomatoes in Mexico and the U.S., anticipates paying millions in duties monthly if the policy stands.
Skip Hulett, NatureSweet’s chief legal officer, remarked, “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,” and added, “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.”
