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Sen. Gallego Voices Concerns Over Potential Tariffs on Mexican Tomatoes

Senator Ruben Gallego (D-Ariz.) has raised alarms regarding the Trump administration’s proposal to implement a nearly 21 percent tariff on most tomatoes imported from Mexico by withdrawing from a 2019 trade agreement. He cautions that such a move could result in increased prices and reduced options for consumers at grocery stores.

Gallego posits that the 2019 Tomato Suspension Agreement has established a fair pricing structure for nearly three decades, facilitating access to fresh tomatoes for U.S. consumers at affordable prices throughout the year.

As of April, the senator noted that oversight agencies have determined that over 99.99 percent of tomato shipments from Mexico adhere to the stipulations outlined in the existing agreement.

“Discontinuing this agreement will lead to elevated costs for American families, diminishing variety at grocery stores, and jeopardizing American jobs,” Gallego highlighted in a detailed letter addressed to Commerce Department Secretary Howard Lutnick, which has been made available to the public. “Studies indicate that without action from your Department, families could see tomato prices increase by an average of 50 percent.”

Furthermore, Gallego explained that if demand for Mexican tomatoes drops, growers may shift their focus to more profitable crops, ultimately reducing the variety available to American consumers and potentially leading to shortages.

The Commerce Department plans to put the 21 percent tariff into effect on July 14, coinciding with the U.S. exit from the 2019 trade agreement.

The department has stated that this decision is intended to enable U.S. tomato producers to compete more effectively in the agricultural market.

In 2019, during the Trump administration, a deal was reached with Mexican tomato producers to prevent the implementation of a proposed tariff on this commodity. The agreement included several provisions to ensure that only quality tomatoes would be imported to the U.S.

Concerns were voiced by U.S. tomato growers regarding the pricing practices of their Mexican counterparts, prompting threats of withdrawal from the agreement. Notably, the U.S. imported more than $2.7 billion worth of tomatoes from Mexico in 2023.

Gallego has underscored the importance of this agreement for communities along the Arizona-Mexico border, warning that withdrawing from it could endanger well-paying jobs in the region.

While the senator endorses the expansion of the domestic agricultural sector and the protection of U.S. farmers, he stresses that trade policies must be logical and considerate of market dynamics.

“The climate in the United States is not conducive to producing many tomato varieties grown in Mexico, limiting our capacity to satisfy year-round consumer demand,” Gallego asserted in his letter to Lutnick. “Furthermore, imports from Mexico play a crucial role in stabilizing prices and preventing shortages when domestic production falls short.”

Source
thehill.com