After nearly 30 years of trading under the Tomato Suspension Agreement, the U.S. is pulling out of the deal—and slapping hefty tariffs on Mexican tomatoes starting Monday. Domestic tomato growers have long complained that cheap Mexican imports have undercut their business, and the Department of Commerce has now hit back with tariffs ranging from 17% to 21%.
Since the original deal was signed in 1996, Mexican tomatoes have dominated about 70% of the U.S. market—leaving only about 30% for homegrown farms. In 2024, the U.S. brought in $3.12 billion worth of fresh tomatoes from Mexico, out of a total of $3.63 billion in imports .
Backlash is already bubbling. Farmers and lawmakers in Texas and Arizona warn the move could hike grocery prices, squeeze consumer choice, and disrupt trade flows at key crossings like Laredo and Nogales . Mexican growers, who agreed on a reference-price deal in 2019 under the Trump administration, are now bracing for the economic hit.
As of Monday, Mexican tomato imports will face tariffs—bringing an end to the 1996-era pact. Whether this levels the playing field or just sows chaos for consumers and border communities remains to be seen.
