A little-noticed import tax on tomatoes from Mexico kicked in on Monday, and experts say shoppers will likely see higher prices
A tomato from Mexico is displayed on March 03, 2025 in San Anselmo, California (Photo by Justin Sullivan/Getty Images).
President Donald Trump has showered tariff threats on dozens of countries around the world in the past week. But one little-noticed import tax kicked in Monday on tomatoes from Mexico, just two days after Trump renewed a threat to impose a blanket import tax on Mexican goods.
It sets in motion a 17% anti-dumping duty unless a new agreement was reached changing trade rules on tomatoes from Mexico. The levy could translate to a bump in a tomato's sticker price at the supermarket, since importers tend to shift some of those costs onto their customers.
"What American consumers can expect is that the overall price of tomatoes will increase," said Jacob Jensen, a trade expert at the American Action Forum. He estimates the cost will increase around eight cents per pound of tomatoes. Field-grown tomatoes cost $1.70 per pound, per data from the Bureau of Labor Statistics.
Some Democrats, like Sen. Ruben Gallego of Arizona, are already branding it as a "tomato tax" on U.S. shoppers. "This isn’t tough on trade — it’s tough on working families," Gallego wrote on X $TWTR. "A tax on your dinner table."
The Commerce Department formally unveiled the change late Tuesday. “Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,” Secretary of Commerce Howard Lutnick said in a statement. “This rule change is in line with President Trump’s trade policies and approach with Mexico.”
In April, the Commerce Department announced it was revoking a 1996 deal with Mexico that allowed tomatoes to be imported into the U.S. duty-free as long as certain trade rules were followed, like a minimum sales price, known as the Tomato Suspension Agreement. In a statement at the time, the department said "the action will allow U.S. tomato growers to compete fairly in the marketplace."
Proponents of ending the agreement argued Mexican exporters sold their tomatoes at low prices that crowded out U.S. growers, particularly in Florida.
The vast majority of U.S. tomato imports — or 90% — are from Mexico. In 2023, Mexican tomatoes accounted for 61% of the total U.S. supply. Critics of terminating the decades-long arrangement say that U.S. shoppers will be left with fewer choices that are more expensive.
The Mexican government has pushed to resolve the standoff to no avail so far. Over the weekend, Trump threatened to impose a 30% tariff on all Mexican goods despite ongoing efforts to clinch a sweeping deal.
Mexican President Claudia Sheinbaum recently said that Agriculture Secretary Brooke Rollins $ROL has been in contact with governors overseeing tomato-producing states in Mexico, including Sinaloa.
One prominent Mexican business executive told Mexican newspaper Milenio earlier this month the discussions have gotten "more complicated" over time, citing the influence of Florida Republicans.
"Florida tomato growers have power, as they're currently a Republican bastion and that makes everything more difficult," said Jorge Esteve Recolon, president of the Mexico's National Agricultural Council, a trade group. "Although it doesn't make sense because the varieties we send are completely different from theirs. But they have lobbyists, they have friends in Congress."
The tax cast a spotlight on dueling regional interests among GOP lawmakers. In a letter to Commerce Secretary Howard Lutnick last week, 18 Florida Republicans including Sen. Rick Scott hailed ending the agreement as a step that will level the playing field for U.S. tomato growers.
Conservatives from Arizona and Texas, though, want Trump to go the opposite direction and strike a new deal. Four House Republicans wrote in a letter to Agriculture Secretary Brooke Rollins last month that "a fair agreement that strengthens American businesses, protects American jobs, and keeps food prices low is within reach."
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