What's happened
The U.S. Department of Commerce announced a 20.91% tariff on most tomatoes imported from Mexico, effective July 14, 2025. This decision terminates a 2019 trade agreement, citing failure to protect U.S. growers from unfair pricing. The move is part of ongoing trade tensions between the two countries.
What's behind the headline?
Implications of the Tariff
- Impact on Prices: The new tariff is expected to increase tomato prices in the U.S., as noted by Michael R. Strain from the American Enterprise Institute, who described the policy as 'astonishing'.
- Trade Relations: This move could strain U.S.-Mexico relations further, as both countries have previously negotiated agreements to avoid such tariffs.
- Market Dynamics: Mexican officials, including President Claudia Sheinbaum, assert that the quality of their tomatoes is unmatched, suggesting that demand will persist despite the tariff.
- Political Context: This decision aligns with President Trump's broader trade strategy, which has included tariffs on various goods to address immigration and drug trafficking issues.
- Future Negotiations: Mexican officials have indicated a willingness to negotiate a new agreement, highlighting the potential for ongoing discussions to mitigate the impact of the tariff.
What the papers say
According to The Independent, the U.S. Department of Commerce stated that the current agreement 'has failed to protect U.S. tomato growers from unfairly priced Mexican imports.' The NY Post elaborates that the U.S. imported $2.7 billion worth of tomatoes from Mexico in 2023, making it a critical market for both countries. Bloomberg succinctly notes the imposition of the 20.91% anti-dumping duty, emphasizing the urgency of the situation as it coincides with the peak tomato season. This multifaceted coverage illustrates the economic and political stakes involved in the decision.
How we got here
The U.S. has historically imported significant quantities of tomatoes from Mexico, with a 2019 agreement aimed at regulating prices and quality. Recent complaints from U.S. growers have led to the decision to terminate this agreement and impose new tariffs.
Go deeper
- What are the implications for U.S. consumers?
- How will Mexico respond to the new tariff?
- What led to the termination of the trade agreement?
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What is the new U.S. tomato tariff on Mexico and why is it happening?
The U.S. Department of Commerce has announced a significant 20.91% tariff on most tomatoes imported from Mexico, effective July 14, 2025. This decision marks the end of a 2019 trade agreement and raises questions about its implications for consumers, growers, and U.S.-Mexico trade relations. Here are some common questions surrounding this development.
More on these topics
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Mexico, officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea
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In the United States, the Department of Commerce is an executive department of the federal government concerned with promoting economic growth.