What Ag Industry Insiders Are Saying About New ‘Tomato Tax’

While it’s been on the table since April, the U.S. Department of Commerce officially withdrew from the Tomato Suspension Agreement with Mexico on July 14. This decision resulted in a 17% tariff on tomatoes from Mexico–a new “tomato tax” that is getting mixed reviews among indoor and outdoor growers.

Here’s what professionals on both sides of the ag industry have to say:

Tom Stenzel, Executive Director of the CEA Alliance: “Unfortunately, the Department failed to take into account the voice of our members in the U.S. greenhouse tomato industry, which now grows more than one-third of all U.S. fresh tomatoes. When the original dumping order was issued in 1996, the greenhouse sector was just beginning to grow, offering consumers better-tasting vine-ripe tomatoes compared with field tomatoes that are picked green.

“Because most high-value greenhouse growers farm in Canada, the U.S. and Mexico, the termination of this agreement will cause significant damage to these growers, serving as a financial barrier to new investment in U.S. greenhouses. Unfortunately, this became a political issue that was not resolved on the facts of what would be best for American businesses and consumers.”

Robert Guenther, Executive VP of the Florida Tomato Exchange: “[The] decision is an enormous victory for American tomato farmers and American agriculture. We’re grateful for the decisive, bold, and crucial action taken by the Trump administration to terminate the U.S.-Mexico Tomato Suspension Agreement. This decision will protect hardworking American tomato growers from unfair Mexican trading practices and send a strong signal that the Trump Administration is committed to ensuring fair markets for American agriculture. Secretary of Commerce Howard Lutnick recognized that five previous agreements with Mexico had failed and that strong enforcement of U.S. trade laws is needed to protect the stability of our food supply chain.

“By standing up for American agriculture, the Trump administration has defended the rule of law and prioritized fairness in trade. This action ensures that American consumers will have more choices and higher-quality products, while strengthening America’s food system against future disruptions. We commend Commerce Secretary Howard Lutnick for his clear-eyed assessment and courageous action in finally terminating this flawed and ineffective agreement.”

The Fresh Produce Association of the Americas (FPAA): “The FPAA is disappointed in the Department of Commerce’s decision to terminate the Tomato Suspension Agreement. This move threatens over 47,000 U.S. jobs, disrupts supply chains, and could lead to higher prices and fewer tomato choices for American consumers.

“We thank the leaders who stood with us—including Gov. Katie Hobbs, Governor Greg Abbott, members of Congress, and national business organizations—and we urge the Administration to continue working toward a new agreement.”

Tony DiMare, President of DiMare Fresh, which has operations in Florida and California: “People say, ‘You’re protectionist. You’re darn right I am. [The U.S.] needs boundaries and guidelines and trade laws to keep these countries in check. We’re talking about 100 years of domestic tomato supply that we don’t want to see go away and this will help.” (Source: NBC News)

Rodolfo Spielmann, President and CEO of NatureSweet: “As a vertically integrated greenhouse grower, NatureSweet manages every step of the process—from growing and harvesting to packaging and distribution—which gives us the ability to absorb some of the cost shocks and all of the additional administrative burden.

“But we operate in a thin-margin industry in which our model is unique, and most growers and distributors are separate. Many smaller growers might not have this flexibility, and this new burden will push some to the brink.”

Note: While headquartered in San Antonio, TX, NatureSweet also operates greenhouse facilities in Mexico.

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