Tomato Price Hikes Are On the Way

Photo Credit: Healthline

The tariffs placed on Mexican tomatoes imported into the US will soon cause the price of tomatoes to rise 40-85%.

The Commerce Department announced on Tuesday last week that they will be terminating the 2013 Suspension Agreement on Fresh Tomatoes from Mexico. This will cause the US to apply a 17.5% tariff on all tomatoes imported from Mexico. This is an issue which experts believe will cause shortages and price hikes throughout the US. Estimates from Arizona State University state that American consumers can expect to pay 40-85% more going forward. The exact price increases will depend on the type of tomato and where in the US they’re being sold. The time frame for these price increases is May-December of 2019. During the Winter months, it is expected that tomato prices will reach their peak, so the highest increases in tomato prices will likely be the coming Winter.

While fresh tomatoes will cost significantly more in the coming months, the costs of tomato-related products should be far less affected. Canned tomatoes and tomatoes that end up in sauces are far less affected thanks to warmer-weather seasons in California and several other states.

The US Department of Commerce began negotiating with Mexico during January of 2018, but the two parties have yet to reach an agreement surrounding this tomato debacle. “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.”

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