Now, the Mexican tomato industry is preparing to meet significant new challenges. Further, starting August 1, the U.S. government will impose a 30% tariff on imported tomatoes. This ruling has major implications to Mexico, which is currently one of the top 10 tomato producing countries in the world. The tariff, announced by the Trump administration, aims to protect U.S. growers from what they perceive as unfair competition due to lower-priced Mexican imports.
Experts believe that the soon-to-be tariff could drive down Florida’s tomato exports by 5% to 10%. In 2022, Mexico exported more than $3 billion of tomatoes, highlighting the severe economic consequences that this trade decision could have. Juan Carlos Anaya, director general of Grupo Consultor de Mercados Agricolas, says that export volume topped 2 billion tons last year. This milestone acknowledges agribusiness’s critical role in Mexico’s economy.
With the deadline for the tariff approaching, the Mexican government has been pursuing good faith negotiations to prevent the highly punitive tax. President Claudia Sheinbaum announced plans to survey local tomato growers to better understand their needs and determine what support can be offered. This initiative demonstrates the government’s commitment to addressing the concerns of producers who are already facing domestic price drops exceeding 10%.
Whatever the actual content of the tariff, its effects are happening in the marketplace already. Small imbibers, too, have been experiencing drops in selling price at amazing rates that may put their financial futures at risk. Yet there’s a great need. Moisés Atri, export director of Veggie Prime, pointed out the urgent challenges that many producers exist in. He continued, “None of us (producers) can afford it. For the past 13 years, Veggie Prime has exported tomatoes to the U.S. Each week, from June through October, they ship 25 truckloads—approximately 100 tons—of fresh tomatoes to Mastronardi Produce, which distributes to some of the largest accounts in North America including Costco and Walmart.
If allowed to stand, the tariff will have devastating effect on the industry. Experts have raised the alarm amid a projected crash in exports. Failure to act, they caution, could result in a loss of nearly 200,000 jobs in the industry. While this would affect farmers directly, it would have repercussions on workers at all stages of the production and distribution pipeline.
In response to these concerns, the Mexican government is looking to other international markets, especially Japan. Most producers are deeply doubtful that this strategy will actually make up for the losses they expect from U.S. exports being curtailed. California and Florida growers control the entire market supply of tomatoes. They’re producing just under 11 million tons largely keeping their focus on processed products. This new domestic competition has added a layer of difficulty for Mexico’s exporters.
The new import tariff on tomatoes went into effect on July 14, increasing urgency both among producers and with the government. As negotiations continue and new solutions are discussed, both sides may be minor players in this military-industrial complex, but they’re deeply aware of the stakes. The result will surely determine the fate of Mexico’s important tomato industry and its numerous stakeholders.
