U.S. Ditches Tomato Pact

The U.S. is slicing up a deal with Mexico that will introduce tariffs on tomato imports. 

Tomato tariff rundown: The U.S. is the top importer of Mexican tomatoes, accounting for about $2.7B. But now, the Trump administration said it will withdraw from an agreement with Mexico that included zero duties on Mexican tomatoes. 

In his first term, Trump negotiated a deal that allowed the U.S. to import tomatoes from Mexico tariff-free so long as they were priced above a reference price level to not undercut domestic producers. 

But that deal wasn’t cuttin’ it. 

Spoiled deal: The International Trade Administration said the agreement “failed to protect U.S. tomato growers” from lower prices due to imports. That was because the deal failed to prevent Mexican producers from selling above the floor price. 

The termination of the agreement will be effective July 14, and a 21% tariff will be placed on tomato imports from Mexico. Additionally, U.S. Customs and Border Protection will begin requiring antidumping cash deposits on entries of tomatoes entering the country. 

Pricey produce? The tariffs only apply to fresh and chilled tomatoes and do not include tomatoes intended for processing. Still, the large jump has some concerned about tomatoes costing more at the grocery store.