• The US has imposed a 17% tariff on most fresh tomatoes from Mexico.
• This move followed the end of the Tomato Suspension Agreement, aiming to protect US tomato growers.
• Mexico currently supplies about 70% of the US tomato market, raising concerns about higher consumer prices.
• Critics warn the tariff will negatively affect US consumers and could lead to retaliatory actions from Mexico.
• Commerce Secretary Howard Lutnick stated the decision was necessary to counteract unfair trading practices.

The U.S. government has announced a 17% tariff on most fresh tomatoes imported from Mexico, effective immediately. This action comes after the Trump administration withdrew from the 2019 Tomato Suspension Agreement, claiming it had failed to protect American farmers from unfairly priced Mexican imports. Secretary of Commerce Howard Lutnick expressed that for too long, U.S. farmers have been "crushed" by such practices, stating, "That ends today," according to Reuters and CBS News.

Currently, Mexico accounts for nearly 70% of the U.S. tomato market, which has seen a significant increase from 30% two decades ago, according to data from the Florida Tomato Exchange. Proponents of the tariff argue that it will rejuvenate the U.S. tomato industry and encourage consumers to choose locally grown tomatoes. However, experts anticipate an 8.5% increase in retail prices for tomatoes following this duty, affecting U.S. buyers, as noted by HuffPost and India Times.

Critics, including various business groups, have raised concerns that this tariff could lead to increased costs for consumers and limit the availability of imported tomato varieties. In a letter to the Commerce Department, the U.S. Chamber of Commerce emphasized that the withdrawal from the agreement could provoke retaliatory actions against U.S. commodities, potentially harming both producers and consumers. They stated, "We are concerned that withdrawing from the agreement... could lead to retaliatory actions," according to CBS News and India Times.

In response to the tariff, the Mexican government has indicated its intention to negotiate a new deal to mitigate the impact on its producers. Mexico's agriculture ministry condemned the tariffs as "unjust," asserting that the success of their tomatoes in the U.S. market is due to quality, not unfair practices. They highlighted, "it will be impossible to replace Mexican tomatoes," according to Al Jazeera and BBC.