Tomato Prices Set To Soar After Trump Administration Ends 17% Antidumping Duty Suspension On Mexican Imports

Tomatoes could become pricier in the U.S. as the 2019 agreement suspending the “Antidumping Duty Investigation” on fresh tomatoes from Mexico expired.

With the U.S. government deciding against renewing the suspension, it issued an antidumping duty order, resulting in a 17.09% duty on tomato imports from Mexico, the Commerce Department said in a statement. 

Commerce Secretary Howard Lutnick said, “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.”

“This rule change is in line with President [Donald] Trump’s trade policies and approach with Mexico.” 

On Friday, Trump shared a snapshot of a letter sent to Mexico, communicating a 30% tariff if a trade deal is not reached by Aug. 1. 

As Trump’s tariff announcements reverberate through the market, the stock market has shown an uneven recovery. Overall, the trend has been positive, with the SPDR S&P 500 ETF (SPY), an exchange-traded fund tracking the broader S&P 500 Index, rising 7.25% year-to-date. 

The iShares MSCI Mexico ETF (EWW) has gained a steeper 30%.

The antidumping duty was first imposed following representation by the domestic fresh tomatoes industry in 1996, claiming that “it was being materially injured by dumped Mexican imports.”

After the agreement was put in place, there have been five suspensions. The 2019 agreement contained a duration section, which allows the Commerce Department to withdraw the deal with 90 days' notice. 

According to a Reuters report, Mexico accounts for two-thirds of the tomatoes consumed in the U.S., with the export fetching the former $3 billion a year.

Timothy Richards, a professor of agribusiness at Arizona State University, said that consumer tomato prices may escalate by about 10% and demand may fall by 5% due to the latest measure, according to a CNN report.

Mexico reportedly said in April it expected the agreement to be renewed. 

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