The Cost of Tomatoes Will Soon Rise

The US could soon experience a major hike in the price of tomatoes.

A new tariff placed on food imports from Mexico may cause the cost of tomatoes inside the US to increase by up to 85% when the weather gets cold again.

Tomato prices have been priced relatively low in the US in recent years. Now, the US is withdrawing from a pact with Mexico, America’s top supplier. The pact, which is known as the ‘Tomato Suspension Agreement,’ expired on Tuesday. The result will be duties of at least 17% being placed on supplies crossing the US border from Mexico. The decision was made in an effort to protect tomato growers in Florida. Tomato growers in Mexico, however, will have to pay collateral to cover the cost of duties before they can export their produce to the US, according to the Mexican Office for Economic Affairs. The final result is expected to be $350 million in extra expenses for producers in the form of fees which smaller businesses wouldn’t be able to bear.

Prices for tomatoes had already jumped when the US Department for Commerce announced the move on February 6th. The prices of tomatoes are expected to adjust for duties, and the course of price increases could last a long time as we go through tomato-growing season. Various estimates put the expected price increases at anywhere between 40-85%, with the greatest increases expected in the October-June period. The lowest price for tomatoes was 98 cents per pound on April 26th, the lowest price since last October.

For their part, the Florida Tomato Exchange is happy with the news, and sees this as a win for Florida tomato growers, who’ve found it hard to compete with their Mexican counterparts.

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