With the United States planning to impose a 20.9% tariff on Mexican tomatoes starting July 14, this means that American consumers may face price increases wherever tomatoes are used—from supermarket shelves to pizza shops.

Many restaurants and small business owners in the US are concerned about the future. Teresa Lasso, the owner of two Argentine-Italian restaurants in Southern California, stated directly that if tomato prices soar, her business would not last more than three months.

This tariff stems from the U.S. Department of Commerce's announcement to withdraw the Tomato Suspension Agreement, which had been in place since 1996. The reason given is that the agreement failed to effectively prevent Mexican tomatoes from "dumping" into the market, harming domestic growers' interests. Once the tariff is implemented, tomato prices are expected to rise by about 10%, and consumer demand could fall by 5%. For restaurants that rely on tomatoes for dishes like pizza and pasta, the cost pressure will increase sharply, bringing the risk of price hikes.

U.S. growers who support the tariff say it is a necessary measure to protect domestic agriculture. The Florida Tomato Association pointed out that multiple agreements have failed to stop Mexican tomatoes from entering the U.S. market at unfair prices. However, Mexico strongly opposes this. Walberto Solórzano, chairman of the Baja California Agricultural Committee in Mexico, stated that Mexican companies have strictly followed regulations such as reference pricing and quality inspections. Some violations are not enough to overturn the entire agreement, and he believes this is more of a "political issue" rather than an economic consideration.

Some large companies, such as Heinz and DiGiorno, due to using local tomatoes, are expected to avoid this impact. However, many small businesses choose to continue using Mexican tomatoes without passing on the costs to customers. For example, Appollonia’s Pizza in Los Angeles has decided to bear the increased costs itself. The co-founder of the restaurant, Justin DeLeon, pointed out that they have already been worried about the price increase of cheese, and if tomatoes also go up, their business will be even harder.

This tomato tariff is one of the latest examples of Trump's chaotic tariff policies. It not only disrupts the global trade landscape but also makes it difficult for businesses to plan for the future, causing American consumers to feel uneasy about the economic outlook.

Original: https://www.toutiao.com/article/1837629039640595/

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