On April 14, 2025, the U.S. Department of Commerce announced the imposition of a 20.9% anti-dumping tariff on most fresh tomatoes imported from Mexico, effectively ending the 2019 suspension agreement that had previously prevented such action. The move is seen as an effort to protect the domestic agriculture industry amid rising trade tensions.

U.S. Reinstates Tariffs After Six-Year Suspension

In an official statement, the Department of Commerce confirmed that the federal government has decided to terminate the 2019 anti-dumping suspension agreement with Mexico. This agreement was originally put in place to avoid a full-blown trade war between the neighboring countries, with Mexico being the primary supplier of fresh tomatoes to the U.S.

However, the department stated: “The current agreement has failed to protect U.S. tomato growers from unfairly priced Mexican imports.” As a result, reintroducing anti-dumping duties is deemed necessary to “ensure a level playing field” for American farmers.

The new 20.9% tariff will take effect on July 14, 2025, and will apply to most fresh tomato imports from Mexico—a country that has dominated U.S. tomato supply chains for years.

Mexico: The Top Tomato Supplier to the U.S.

According to the U.S. Department of Agriculture, Mexico accounts for nearly 60% of all fresh tomato imports into the U.S. annually. These include cherry, standard, and Roma tomatoes, which are mainly used in food processing, domestic consumption, and major supermarket chains.

In 2023 alone, the U.S. imported over 1.8 million tons of tomatoes from Mexico, amounting to nearly $2.3 billion in trade. This means any change in U.S. policy could significantly impact supply chains and domestic tomato prices.

Moreover, states like Florida, California, and Texas—with strong agricultural sectors—have long expressed concerns over cheap Mexican tomatoes undercutting local farmers. U.S. farming associations have repeatedly urged the government to take stronger measures to support domestic agriculture, especially as input costs continue to rise.

Tariffs as a “Rescue Plan” for American Farmers?

A Commerce Department representative said the decision aims to “rebalance the market” and give domestic tomato growers a chance to recover after years of pressure from low-cost imports.

“We understand that U.S. production costs are higher than in Mexico, but that shouldn’t become an insurmountable disadvantage for American farmers. This is a legitimate step to protect domestic production,” the official stated.

The anti-dumping measure is expected to boost the competitiveness of the U.S. tomato industry—particularly in southern farming states that have long struggled to match Mexico’s year-round supply and low prices.

However, experts warn that American consumers may soon face higher tomato prices due to supply shortages and increased import costs.

Mexico's Reaction and Trade Policy Implications

Mexico has yet to issue an official response to the U.S. decision. However, prior to this, Mexican Finance Minister Marcelo Ebrard emphasized that Mexico was not on the list of countries affected by the 10% retaliatory tariffs announced by the U.S. government on April 3.

Mexican President Claudia Sheinbaum also stated that Mexico is in a “stronger” position compared to many other countries under the new U.S. tariff program—partly thanks to the U.S.-Mexico-Canada Agreement (USMCA), which had previously ensured low or zero tariffs on items like tomatoes.

Still, the U.S.’s unilateral termination of the 2019 agreement and implementation of anti-dumping duties could strain bilateral trade relations—especially given that tomatoes are one of Mexico’s key export products with high trade value.

Potential Impact on the U.S. Market

Raising tariffs on Mexican tomatoes will likely reduce the competitiveness of these products in the U.S., possibly leading to lower import volumes and a short-term spike in domestic tomato prices. According to the U.S. Institute for Food and Agriculture Policy, consumers will be directly affected if Mexican supply is limited during peak demand periods.

Retail chains, restaurants, and food processing plants will also feel the effects of rising input costs. As food inflation remains a pressing issue, experts recommend close monitoring of both governments’ next steps.

U.S. Farming Groups React

The Florida Tomato Growers Exchange—representing the state with the largest tomato-growing area in the U.S.—strongly supported the Commerce Department’s decision. The group described it as “a major step forward in protecting domestic farmers’ interests and restoring fairness to the marketplace.”

A spokesperson stated, “We’re not afraid of competition—but it has to be fair. For years, cheap imports have forced many Florida farms to shut down. These tariffs are necessary.”

However, some argue that tariff protection must be balanced with broader strategies to stabilize the market. Suggested solutions include improving domestic productivity, investing in seed innovation, and upgrading supply chains to ensure long-term competitiveness.

Conclusion: A New Trade Tension in U.S.-Mexico Relations

The decision to impose anti-dumping tariffs on Mexican tomatoes highlights ongoing challenges in U.S. trade relations—even among close partners within free trade agreements like the USMCA.

While the move may offer short-term protection for American farmers, it also risks escalating prices and trade friction in the region. With the U.S. presidential election approaching, trade policies are expected to shift further in an effort to win support from key agricultural states.

Both Washington and Mexico City will need to engage in careful negotiations to ensure that protectionist measures don’t damage strategic partnerships or disrupt supply chains critical to both economies.