The 'Tomato Tax' Is Here

American shoppers may soon find their favorite tomatoes pricier and harder to find as a new 17% tariff on Mexican imports shakes up the produce aisle and reignites a decades-old trade battle, the New York Times reports. The Trump administration imposed the tariff, effective immediately, on most Mexican tomato imports, ending a trade agreement that had kept such levies at bay for nearly three decades. The move is the result of a longstanding dispute: US tomato growers, particularly in Florida, have argued since the 1990s that Mexican producers were undercutting prices and harming the domestic market. While a trade court sided with the Americans in 1996, the two countries repeatedly agreed to suspend tariffs, provided Mexican growers kept prices above a set threshold.

Those days are over, at least for now. Commerce Secretary Howard Lutnick defended the decision, saying it was consistent with President Trump's push for stricter trade enforcement and would protect American farmers from "unfair trade practices." Mexican tomatoes account for more than 85% of all US tomato imports, according to World Bank data, with $2.8 billion worth imported in 2023. Prices for consumers could jump 10% with the new tariff, an expert tells CNN.

Not everyone is cheering. The Fresh Produce Association of the Americas, a group representing importers and sellers, said the new duty amounts to a "tomato tax" that limits consumer choices and raises prices, since they say Florida tomatoes can't match the variety and growing methods coming out of Mexico. On the other side, the Florida Tomato Exchange welcomed the tariffs, arguing that past deals failed to protect American growers or the broader food supply chain.