Guacamole has been spared from tariffs for now. However salsa will not be so fortunate.
Whereas President Donald Trump put threatened tariffs on Mexican avocados on pause, the U.S. authorities plans to place an almost 21 p.c responsibility on recent Mexican tomatoes beginning July 14. An obligation — like a tariff — is a tax on imports, and this one would influence the 4 billion kilos of tomatoes the U.S. imports from Mexico every year.
Proponents say the import tax will assist rebuild the shrinking U.S. tomato trade and make sure that the produce eaten within the U.S. can be grown there. Mexico presently provides round 70 p.c of U.S. tomato market, up from 30 p.c twenty years in the past, in response to the Florida Tomato Alternate.
“Unless we even the playing field in terms of fair pricing, you’re not going to have a domestic industry for fresh tomatoes in the very near future,” stated Robert Guenther, the commerce group’s govt vp. Florida and California are the highest U.S. producers of tomatoes, however most of California’s crop is became sauces and different merchandise.
Opponents say the responsibility will make recent tomatoes costlier for U.S. consumers. NatureSweet, a San Antonio-based firm that grows tomatoes in Mexico in addition to the U.S., stated it will likely be paying tens of millions of {dollars} every month in duties if the choice isn’t reversed.
“We will look for ways to adapt or streamline our operations, but the truth is, we are always doing that so we run an efficient business already,” stated Skip Hulett, NatureSweet’s chief authorized officer. “Produce is not a large-margin business. We’re determining what portion of the cost we could absorb, but these added costs will most certainly need to be passed on to the consumer.”
