Mexican tomato growers are bracing for major impacts, including reduced exports, job losses and declining domestic prices, following the United States' imposition of a 17.09 percent duty on most fresh tomatoes imported from Mexico on July 14.
The decision to impose the duty was announced by the U.S. Department of Commerce, marking a withdrawal from the 2019 agreement between the two countries to suspend the antidumping investigation on fresh tomatoes.
Mexico's ministries of economy and agriculture said on Monday in a joint statement that the U.S. decision was unfair, as it not only harms the interests of Mexican producers but also affects U.S. related industries and consumers.
Mexico supplies at least two-thirds of the tomatoes consumed in the United States, with annual exports worth more than 2.8 billion U.S. dollars.
In the Mexican state of Morelos, one of the country’s major tomato-producing regions, growers say they expect reduced exports to the United States due to the newly imposed duty, and they believe American consumers will also feel the impact of higher tomato prices.
"We believe that the export of Mexican tomatoes to the United States will drop by at least 15 to 20 percent as a result of the newly imposed duty. The tomatoes, which previously would head towards the U.S. market, will stay in Mexico and the U.S. consumers will pay more for imported Mexican tomatoes because they have to pay the duty," said Humberto Sandoval Zamora, a tomato grower in Morelos.
Beyond the growers, the entire industry is bracing for broader impacts, as key stages of production -- from cultivation and picking to transportation -- are poised to take a heavy hit.
"Since exporting tomatoes to the U.S. has become less profitable, we will pick less and transport less tomatoes in Mexico, and as a result less workers are needed. The newly imposed U.S. duty will lead to job cuts and many people will become unemployed," said Jose, a tomato picker.
Major Mexican tomato exporters have decided to cut shipments to the U.S. market, while tomato prices in Mexico have dropped sharply due to a drastic increase in supply.
"Over the past three days, domestic tomato prices have dropped by nearly 40 percent, and they’re still falling," said a tomato distributor in Morelos.
Mexican tomato growers brace for industry-wide impact from US tariff
