Hey there! You know how we all love our tomatoes? Well, there's some news that might make you do a double - take. A PSA for you: tariffs could send the price of this summer staple sky - high by nearly 40 percent. Let's break it down.
You've probably heard the phrase “To - may - to, to - mah - to,” but the U.S. Department of Commerce has a different story. Last month, a new 17 percent tariff on Mexican tomatoes came into effect, putting an end to an agreement between the U.S. and Mexico that had been in place since 2019. This tariff is basically a tax on imports, and it could hit U.S. grocery stores hard.
Why? Because we in the U.S. eat a ton of tomatoes, and most of them come from Mexico. Analysts are predicting major price hikes, which means your next trip to the grocery store might cost you more.
Tomatoes are super popular in the U.S. They're one of the top five favorite fruits and veggies, according to the International Produce Association. We love them fresh, canned, and in staples like salsa, pizza sauce, and marinara. Unless you're getting heirloom or cherry tomatoes from your local farmers' market during peak season (May to September), you'll likely notice a change in your spending, whether you're at home or dining out.
Decades ago, Mexico only supplied about 20 percent of America's tomatoes. The U.S. grew the other 80 percent. But things started to change after 1992 when Mexico, Canada, and the U.S. signed the North American Free Trade Agreement (NAFTA). By 1994, they agreed to remove tariffs on most goods, and Mexico started producing more, including tomatoes.
Today, the Florida Tomato Exchange says that 70 percent of the tomatoes we eat in the U.S. come from Mexico. Thanks to better growing methods and lower labor costs, Mexican tomatoes have become more diverse and a great deal.
The U.S. Commerce Department says the new tax is because they think Mexican tomatoes have been sold in the U.S. at unfair prices. This month, Mexico responded by setting new minimum prices for all kinds of tomatoes. An agricultural consultant in Mexico City said these new prices could mean a 40 percent jump for round tomatoes and 26 percent for cherry and grape varieties.
Before this, Bloomberg reported that a U.S. tomato importer, NatureSweet, would have to raise prices by 10 percent if the existing deals between the U.S. and Mexico fell apart.
It's still not clear how fast tomato prices will change at the grocery store, or if they'll change at all. The Mexican tomato industry might absorb the extra costs, or they could pass them on to us, the consumers.
Economists and industry experts think the new tariffs could increase tomato prices by 7 to 11 percent. This won't just affect your grocery bill (a pound of tomatoes that used to cost $$3.99 might now cost around $$4.49), but also restaurant menu prices. If restaurants have to pay more for tomatoes and tomato - based products, they'll probably charge more for your meal too.
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