Mexican officials said they are negotiating with the Trump administration and U.S. growers to avoid ending the trade agreement that lets Mexico export tomatoes to the U.S. duty-free.
The Trump administration said in April it plans to withdraw from the Tomato Suspension Agreement between the two countries on July 14.
In addition to withdrawing from the suspension agreement, the U.S. Department of Commerce said tomatoes from Mexico will be tariffed between 17% and 21%.
“Mexico is moving towards zero tariffs, and of course, we demand the same conditions we give to American products in Mexico,” Leonel Cota Montaño, Undersecretary of Mexico’s Ministry of Agriculture and Rural Development said according to Milenio.
Luis Rosendo Gutierrez, Mexico’s Undersecretary of the Economy, and Julio Berdegué, Secretary of Agriculture, met with U.S. tomato growers in Washington on Wednesday, according to media reports.
“I hope that within 72 hours we’ll hear from the secretary of agriculture and the undersecretary of economy, and that this will be positive,” Montaño said.
Related: White House slapping 21% tariffs on tomatoes from Mexico
Tomatoes sold in the U.S. from Mexico are controlled by the Department of Commerce through the suspension agreement, which sets minimum pricing and regulates sales between growers and importers.
Mexican tomato producers signed an agreement with President Donald Trump’s first administration in 2019 to end a tariff dispute.
As part of the 2019 agreement, Mexico-based growers agreed not to sell tomatoes below a reference price, a seasonably adjusted floor price at which Mexican tomatoes can’t fall underneath and still be exported to the U.S.
In April, the Department of Commerce said the suspension agreement has failed to protect U.S. growers.
“The current agreement has failed to protect U.S. tomato growers from unfairly priced Mexican imports, as Commerce has been flooded with comments from them urging its termination. This action will allow U.S. tomato growers to compete fairly in the marketplace,” the department said in a news release on April 14.
Mexico exports about 56% of the tomatoes it produces, with 99% of exports destined for the U.S., according to the country’s Ministry of Agriculture and Rural Development, reported Milenio.
In 2024, the U.S. imported $3.12 billion worth of fresh tomatoes from Mexico. This accounted for the majority of the total U.S. tomato imports, which were valued at $3.63 billion, according to the Observatory of Economic Complexity and Texas A&M.
The Laredo customs district in South Texas — which includes Laredo’s World Trade Bridge and the Pharr-Reynosa International Bridge in Pharr — accounts for the majority of tomato imports from Mexico, followed by the border crossing in Nogales, Arizona.
President Donald Trump’s looming tariffs on imported tomatoes from Mexico has drawn both support and criticism from U.S. trade stakeholders and growers.
“The Tomato Suspension Agreement is at risk. If withdrawn, a 17% import tax could hit fresh tomatoes from Mexico, increasing prices and limiting the variety and flavor we rely on. This affects everyone, from growers and distributors to restaurants and families at the dinner table. Let’s protect our border economy and our food choices,” the Nogales-Santa Cruz County (Arizona) Chamber of Commerce recently posted on Facebook.
Dante Galeazzi, CEO of the Texas International Produce Association (TIPA), said the Tomato Suspension Agreement is crucial to South Texas.
More than 2.1 billion pounds of tomatoes grown in Mexico were imported through Texas in 2023, according to TIPA. Tomato imports directly support over 30,000 jobs in Texas, including industries such as transportation, logistics, warehousing and distribution.
“Tomatoes are one of the most significant imported commodities through Texas ports of entry,” Galeazzi said according to Texas Border Business.
Officials for the Florida Tomato Exchange (FTE) said they support ending the suspension agreement and tariffs on Mexican-grown tomatoes.
Florida growers have been pushing for more restrictions on Mexican-grown tomatoes for decades. Since 1996, the U.S. and Mexico have negotiated five separate agreements regarding tomato imports.
“For decades, American tomato farmers have suffered from unfair trade practices by Mexican tomato exporters,” Robert Guenther, FTE executive vice president, said in a news release. “Terminating this agreement and enforcing U.S. trade laws is the only way to finally give domestic growers the relief they’ve long deserved.”
Related: US mulls terminating tomato trade agreement with Mexico
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