Mexican tomato exporters prepare for bitter challenges. As of August 1, the U.S. has slapped on a 30% across-the-board tariff on all their exports to the U.S. Under the new U.S. administration, this has grown into a much larger protectionist offensive. They have threatened corresponding tariffs on many other countries — and in fact have done so twice with Mexico. This tariff could threaten Mexico’s status as one of the world’s top 10 tomato producing countries. It would threaten to upend an industry that produced more than $3 billion in exports last year.
The tariff, which began with an import tax on July 14, could result in a 5% to 10% decline in tomato exports, according to experts. Juan Carlos Anaya, director general of Grupo Consultor de Mercados Agrícolas, had some pretty breathtaking news. Last year, according to Mexico’s Agriculture Ministry, Mexico exported more than 2 billion tons of tomatoes. The potential decrease in exports is what is particularly alarming. Estimates indicate that up to 200,000 jobs are potentially at risk.
We were thrilled to hear from Mexican President Claudia Sheinbaum that her administration would back local tomato growers through this very important moment. Shortly after taking office, she declared that her administration would canvass tomato growers. Our shared goal is understanding their needs and determining how best to deliver the targeted assistance they need most.
Small producers are already starting to feel the pinch associated with falling prices. Under their watch, they’ve allowed domestic tomato prices to fall by over 10%. Moisés Atri, export director of Veggie Prime, painted a bleak picture for producers. For that reason, he insisted, “None of us can afford it.” For nearly 13 years, Veggie Prime has been exporting fresh tomatoes to the U.S. Veggie Prime currently ships about 100 tons per week to Mastronardi Produce, which has agreed to buy all the tomatoes that Veggie Prime can grow through 2026.
California and Florida together grow up to 11 million tons of tomatoes each year, mostly for processing. As industry experts are contending, U.S. growers will come out on the losing end. It will be no simple task to replace the volume and quality of fresh tomatoes that are currently imported from Mexico. Mexican Agriculture Secretary Julio Berdegué said at the time that the government would actively seek alternative markets. They’re looking to Japan to be the answer to mitigate the effects of these tariffs.
With negotiations continuing, the hope is they reach a resolution ahead of the August deadline. At the same time, the Mexican government is committed to increasing its agriculture sector. These roundtables will be crucial in determining the future of tomato exports. They will further set in stone the destruction of the livelihoods of thousands more who count on this life blood profession.
