The Fox Business’ Ashley webster speaks about the upcoming tomato tariffs with Steve Longgier, the owner of Tency Homegron Tomato.
Farm groups and Republican MPs have played more alarms than 21% tariffs which become hit on Monday. Fresh tomato imports from Mexico, Threatening to shake a North American supply chain that provides billions of pounds tomatoes to American consumers every year.
Tomato suspension in the heart of the fight is the end of the suspension agreement, a trade treaty first signed in 1996 and was finally updated in 2019. The deal stopped anti-dumping duties in exchange for Mexican exporters, which agreed to the minimum price. But in April, the US Department of Commerce announced that it would withdraw from the agreement citing its failure to protect domestic producers from artificially low -priced imports.
A divided tomato industry
Tariff has exposed a Stark divide Between tomato growers. In Florida, where most of the overall supply of fresh tomatoes to American farmers has been calling the move for a long time. They say that the years of cheap imports have eradicated the American industry.
“We are not afraid of competition with Mexico,” said Bob Spencer, owner of Florida -based West Coast Tomato. “But if we continue to move, Mexico will have a monopoly. It is not good for the American consumer. We need strong producers in both Mexico and Florida, and American deserve an option.”
Tariff has highlighted a Stark division among tomato growers. (Artur Vidak / Narfoto Getty Image) / Getty Images)
Spencer whose family is Farming tomatoes since 1920sThe argument is that Mexico’s low labor costs and less stringent rules have created an uneven sports ground.
Spencer says that this is a nationwide problem that not only affects producers and local economies in the sun state, but other states growing in the US
The owner and operator of Tennessy Homegron Tomato agrees.
He said, “They need to stop dumping tomatoes in this country,” he said, citing the price difference which reduces their $ 20- $ 25 per box production cost.
Critic: Tariff will damage prices and investment
Critics warned Restore duty Consumer prices and stunts in the rapidly growing greenhouse sector will promote innovation.
Trump announced a 50% tariff on Brazil’s imports starting in August. 1
“A tariff only takes away the financial capacity to expand the American greenhouse,” said Tom Stanzel, Executive Director of the controlled environment agricultural coalition.
Tomato suspension in the heart of the fight is the end of the suspension agreement, a trade treaty first signed in 1996 and was finally updated in 2019. (Istock / istock)
Stanzel said that 70% of tomatoes imported from Mexico have now become greenhouse-grors, and many US companies have expanded operations in North America to keep coordination with demand. Although exporters can seek reimbursement for tariffs, Stanzel argues that it may take two years to get advanced duties and bond requirements back – and there are costs that will be passed to American retailers and shopkeepers.
Naturweight, a major greenhouse in Mexico, also pushed back. The company told Fox Business that the suspension agreement has stabilized prices for about 30 years and its removal could lead to unstable supply and price spikes.
“As a Texas-based American company in a low-margin business, we will really have no choice, but to increase our healthy vine-ripenings to increase the prices close to 10%, to be able to continue tomatoes for our consumers,” Skip Hulet told Fox Business last week.
Naturesweet, a major greenhouse tomato producer in Mexico, reported that the Fox Business Suspension Agreement has stabilized prices for about 30 years and its removal may lead to unstable supply and price spikes. (Watts for Washington Post through Getty Image) / Getty Image)
Although the company will try Absorb some costs, The reality is not so simple.
A growing stake from Mexico
Mexican-developed tomatoes are now around 70% of the US market, which was above 30% two decades ago. Meanwhile, the share of American producers in 1996 has ranged from 80% to only 30% today. Florida Tomato Exchange claims that the dumping margin up to 273% to 273% damages domestic farmers.
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Executive Vice President of the Exchange Robert Guanthar said, “The only way to level the playground is to eliminate the agreement and implement the fair trade.”
Political pressure mounts
Republican MPs of the states dependent on tomato imports have joined the opposition. In a June 1 letter to the Department of Commerce, Reps Andy Bigs, R-RAR, and Tony Gonzalase, R-Texas argued that the suspension agreement has preserved American jobs, encouraged innovation, and prevented overgarations.
However, both who want strict enforcement against alleged dumping and who see tariffs as a threat to market stability, agree on one thing: the decision may reopen the tomato industry in North America for the years to come.
