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U.S. tomato prices expected to increase

U.S. tomato prices expected to increase


U.S. tomato prices expected to increase


Whether you consider it a fruit or a vegetable, prices for fresh tomatoes are expected to skyrocket.

On Tuesday, the U.S. Commerce Department announced the termination of the 2013 Suspension Agreement on Fresh Tomatoes from Mexico. 

This means the U.S. will impose a 17.5% tariff on imported Mexican tomatoes, a move that experts say may lead to shortages and price hikes.

According to estimates from Arizona State University, consumers could pay 40% to 85% more for vine-ripe and other fresh tomatoes.

Prices could rise 40% from May to December, according to the university analysis by economists led by Timothy Richards, the Morrison chair of agribusiness. During the cooler months, when there are fewer domestic supplies of tomatoes, prices could escalate up to 85%, according to the estimate.

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The prices of canned tomatoes and those that end up in sauces wouldn’t be nearly as affected because of warmer-weather growing seasons in California and many other states, Richards said.

The Commerce Department says it began negotiating with Mexico in January 2018, yet the two sides haven’t reached an agreement.

“The Department of Commerce remains committed to ensuring that American domestic industries are protected from unfair trading practices,” said Secretary of Commerce Wilbur Ross in a statement. “We remain optimistic that there will be a negotiated solution.”

After the Commerce Department announced it would re-impose anti-dumping duties on Mexican imports Tuesday, Mexico’s Economy Department said U.S. consumers could pay 38% to 70% more for tomatoes.

The tariffs could be refunded if a revised agreement is reached, according to the Commerce Department’s statement. 

Contributing: Russ Wiles, The Arizona Republic; Associated Press

Follow Kelly Tyko on Twitter: @KellyTyko



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