K A S H R U T . C O M_©

A new tariff on Mexican fresh tomatoes started on May 7. Get ready for prices to skyrocket.

May 7, 2019: from the Washington Post

"The United States will impose a 17.5 percent tariff on Mexican tomato imports starting Tuesday, and economists say that could lead to shortages and price increases of up to 85 percent as soon as this winter."

"The tariffs follow a breakdown of a 22-year-old agreement that had attempted to maintain the peace between American and Mexican tomato growers. Mexican imports account for about 54 percent of the U.S. tomato market."

"According to an analysis by economists at Arizona State University conducted in April, American consumers could soon be paying 40 to 85 percent more for vine-ripened fresh tomatoes."

"Florida Tomato Exchange, a U.S. trade organization, argued that Mexican growers dumped artificially low-priced tomatoes on the U.S. market, undermining American farms."

"The U.S. growers contended that as a result, U.S. tomato production declined by 34 percent, from 4.4 billion pounds to 2.9 billion pounds, between 2002 and 2017. Mexican tomato imports to the United States skyrocketed 125 percent, from 1.6 billion pounds to 3.6 billion pounds, during the same period."

"On April 8, Mexican growers offered concessions such as increasing some prices on tomatoes and compelling growers to take back shipments with high rates of defective tomatoes at their own expense."