Discussion of Mexican tomato tariffs between farmers and importers

Agriculture groups and Republican legislators show a 21 % tariff alert. Fresh tomato imports from Mexico, It threatens to get rid of the supply chain in North America, which provides billions of pounds of tomatoes for American consumers every year.

At the heart of the battle, the agreement to suspend tomatoes, a trade agreement signed for the first time in 1996 and was last updated in 2019. The deal stopped the duties of dumping against the approval of Mexican exporters at the minimum price. But in April, the US Department of Commerce announced that it would withdraw from the agreement, noting its failure to protect local farmers from artificially low -price imports.

Divided tomato industry

the The tariff revealed a blatant division Between tomato farmers. In Florida, the majority of the total supply of fresh tomatoes for American farmers is launching this long step. They say years of cheap imports have eroded the United States industry.

“We are not afraid of competition with Mexico,” Bob Spencer, the owner of the West Coast tomato in Florida, told Fox Business before the deadline. “But if we continue to go on the way, Mexico will be a monopoly. This is not good for the American consumer. We need strong farmers in both Mexico and Florida, and Americans deserve the choice.”

Spencer, who has his family Cultivated tomatoes since the twenties of the twentieth centuryIt argues that the low costs of employment in Mexico and the least stronger regulations have created an uneven stadium.

Trump’s bold tariff strategy has French cheese and tie wine shivering with uncertainty

Spencer says it is a problem at the country level that not only affects local farmers and economies in Sunshine, but other countries that grow in the United States

Steve Longger, the owner and operator of Tennesse HomeGrown Tomatoes.

“They need to stop throwing tomatoes in this country,” he said, citing the price differences that reduce 20 to 25 dollars for each cost of the fund’s production.

Critics: The tariff will harm prices and investment

Critics warns that Return Consumer prices and innovation in the green growing greenhouse will rise.

Trump declares a 50 % tariff for Brazilian imports starting from August. 1

“A tariff only robbs the financial capacity to expand American greenhouses,” said Tom Stezel, Executive Director of the Agriculture Alliance, which is controlled by the control.

STANZEL indicated that 70 % of Mexico tomatoes are now banking, and that many American companies have expanded their operations throughout North America to keep pace with demand. Although exporters can seek compensation for definitions, STANZEL argues that the duties provided and the requirements of bonds may take two years to return – these are the costs that will be transferred to American retailers and shoppers.

Natores Woy, a major greenhouse tomato farm based in Mexico, also pushed back. The company told Fox Business that the suspension agreement has settled on prices nearly 30 years ago, and its removal may lead to a volatile displacement and price screws.

“As an American company based in Texas in a low margin company, we will have no choice but to raise prices by approximately 10 % in order to be able to continue to bring in the health specialized tomatoes of grape gyms to our consumer,” said Skip Hullt, chief legal official in Naturesword, for Fox Business last week.

Although the company will try that Say some costs, Reality is not very simple.

A growing share of Mexico

Mexican tomatoes now represent approximately 70 % of the American market, up from 30 % two decades ago. Meanwhile, the share of American farmers decreased from 80 % in 1996 to only 30 % today. The demands for the exchange of tomatoes in Florida, which reaches 273 % less than the minimum agreed to harm local farmers.

Get Fox Business on the Go by clicking here

“The only way to settle the stadium stadium is to end the agreement and impose fair trade,” said Robert Gontter, Executive Vice President of Exchange.

Political pressure escalates

Republican lawmakers from the states that relied on tomato imports joined the opposition. In a letter to the Ministry of Commerce, actors Andy Bigz, RRI, Tony Gonzalez, R-TEXAS, argued that the suspension agreement has maintained American jobs, encouraged innovation, and prevented excessive organization.

But those who want a tougher enforcement against the alleged dumping and those who see the tariff as a threat to market stability agrees on one thing: the decision can reconfigure the tomato industry in North America for years to come.