- Donald Trump has imposed a 17 per cent tariff on tomatoes imported from Mexico, raising concerns about increased prices for consumers and businesses.
- The tariffs took effect after the US withdrew from the nearly three-decade-old Tomato Suspension Agreement, with the Secretary of Commerce stating American farmers had been ‘crushed by unfair trade practices’. The Commerce Department calculated the 17 per cent import tax to measure the percentage by which Mexican tomatoes were allegedly sold at unfair prices in the US.
- The measure is expected to result in higher costs at supermarkets and restaurants, with one Californian restaurant owner predicting bankruptcy within three months.
- Mexico, which supplies about 70 per cent of US tomatoes, has refuted claims of dumping, insisting the popularity of their produce is due to its quality, and stated that substitution would be impossible.
For those that don’t know for fresh market tomatoes.
Indeterminate tomato vines can be grown for years if they don’t freeze.
Mexico has invested heavily in greenhouses, high tunnels and thrip-proof net-houses. These allow for year round production of tomatoes. This was done with government money.
Canada has also invested heavily in greenhouses to grow tomatoes and produce them year round. This was also done with government money.
Meanwhile the U.S. focused on open field machine harvested sauce tomatoes controlled by massive corporations. There are still some U.S. tomato growers that rely almost 100% on immigrant labor. In general they produce 1/10th the tonnage per acre at higher cost even with the cheap labor.
What manufacturing sector of the American economy doesn’t focus on migrant labor?