Stock up now or pay the price later. You might think all tomatoes are the same, but the U.S. Department of Commerce has other ideas.
Last month, a new 17% tariff on Mexican tomatoes took effect, ending an agreement between the U.S. and Mexico that started in 2019. This tariff is an import - tax and could hit U.S. grocery stores hard.
We in the U.S. love our tomatoes. And most of the tomatoes we eat come from Mexico. With this change, some analysts predict big price hikes that will affect your next grocery bill. Here's what you need to know.
According to the International Produce Association, tomatoes are one of the five most popular fruits and vegetables in America. We enjoy them fresh, canned, and as salsa, pizza sauce, and more.
If you're not stocking up on heirloom or cherry tomatoes from your local farmers' market during the peak season (May - September), you'll likely notice a change in your spending, whether at home or dining out.
Decades ago, Mexico supplied only about 20% of U.S. tomatoes. The remaining 80% were grown in the U.S., as per USDA data. But things changed after 1992 when Mexico, Canada, and the U.S. signed NAFTA. By 1994, they removed tariffs on most goods, and Mexican production of everything from cars to tomatoes increased.
Today, the Florida Tomato Exchange says Mexican tomatoes make up 70% of the tomatoes consumed in the U.S. Thanks to advanced growing methods and lower labor costs, Mexican tomatoes have become more diverse and a better deal.
The U.S. Commerce Department says the new tax is based on what they think are unfair prices of Mexican tomatoes sold in the U.S.
This month, Mexico announced new minimum prices on tomatoes of all kinds, from cherry to Roma. An agricultural consultant in Mexico City said these new minimums mean a 40% price jump for round 'bola' tomatoes and 26% for cherry and grape varieties.
Previously, Bloomberg reported that a U.S. tomato importer, NatureSweet, would raise prices by 10% if existing U.S. - Mexico deals ended.
It's still not clear how quickly tomato prices will change in grocery stores, or if they will at all. The Mexican tomato industry might absorb the extra costs or pass them on to consumers.
Economists and industry experts estimate that the new tariffs could increase tomato prices by 7% - 11%. This will affect your grocery bill (a pound of tomatoes that cost $$3.99 might now be $$4.49) and restaurant menu prices too. If restaurants pay more for fresh tomatoes and tomato - based products, those costs will likely be added to your meal price.
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