On Monday, the US Government led by President Donald Trump announced a 17% import duty on Mexican tomatoes, framed as a measure to revive its domestic tomato industry. This was announced after the talks with Mexico to renegotiate terms to replace the now-withdrawn 2019 Agreement. The move came days after the US announced a 30% tariff on goods from Mexico starting August 1.
The 2019 Agreement with Mexico was enforced to suspend the antidumping duty investigation on fresh tomatoes from the country, while ordering an antidumping duty of 17.09% on most of its imports of tomatoes.
According to the European Commission, dumping is a trade practice of exporting goods at a lower price than the domestic market to increase one's market share internationally. Antidumping duties are additional taxes imposed on imported goods by a country to safeguard the prices in the national market.
The US Department of Commerce stated that the withdrawal of the nearly three-decade-old agreement and imposition of the antidumping duty came after the US claimed that "Mexican tomatoes have been sold in the United States at unfair prices." According to the Department, since 1996, the US domestic tomato industry has sought protection from what it claims are unfairly priced or dumped Mexican tomato imports.
"Now that the 2019 Agreement is terminated, Commerce is issuing an antidumping duty order, resulting in duties of 17.09 percent on most imports of tomatoes from Mexico. Antidumping duties are calculated to measure the percentage by which Mexican tomatoes have been sold in the United States at unfair prices," the US Department of Commerce announced.
US Secretary of Commerce Howard Lutnick also confirmed that the withdrawal decision was taken in line with President Trump's "trade policies, and approach with Mexico". "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 Trump's trade policies and approach with Mexico," Lutnick said as per the statement.
Mexico currently supplies 70% of the US tomato market. Two decades ago, that figure was just 30%. If tomato prices jump because of new tariffs on the Mexican-grown produce, restaurant owner Teresa Razo says her businesses would have to close. “I give it three months, and then we go bankrupt,” said Teresa Razo, owner of two Argentine Italian restaurants in Southern California.
According to the Bureau of Labor Statistics, in the US, field-grown tomatoes cost about $1.70 per pound as of May 2025. This price could rise by about 10% and demand may fall by 5% because of these tariffs, according to Timothy Richards, a professor of agribusiness at Arizona State University.
The new Trump tariff announcement could mean higher prices for Americans at the grocery store, at the pizza parlor, or anywhere that uses tomatoes. Smaller businesses face greater risk of closure due to high prices. In a June report, the department found that the new tariffs would likely lead to a drop in tomato imports and boost prices.
However, some US growers support the new update in tariffs and argue that tariffs are necessary to combat dumping or the practice of selling cheap exports into a foreign market to undercut homegrown products.
