Tomato Prices May Rise as U.S. Imposes 17% Tariff on Mexican Imports

If your next trip to the grocery store includes tomatoes, don’t be surprised if prices are higher than usual. The United States has officially withdrawn from a 30-year-old tomato trade agreement with Mexico, paving the way for new 17% tariffs on most Mexican-grown tomatoes.

While some states may feel the effects of this policy shift, California growers say local prices will likely remain stable.

“We're lucky that we have all the produce here,” a UC Davis economics professor explained. “We’re looking at much more of an impact in the northern states.”

For growers like Laura Telly in Modesto, California, the situation is twofold. Selling homegrown heirloom tomatoes at her family stand, she says about 95% of their produce is locally grown and won’t be affected by the new tariffs. “Those homegrown tomatoes are sold right here,” Telly noted. “Because they're not imported, our stand prices won’t change.”

However, Telly also runs a small distribution business that supplies imported tomatoes to local taco trucks and taquerias. For that side of her operation, she expects some price hikes. “If they're talking 30%, prices could go up 40% just to make a little bit extra by handling it,” she said.

Despite the looming tariff changes, Telly doesn’t expect a sudden rush of new customers. “Honestly, very little percentage. Only because if they were going to come out here, they'd already be out here.”

Even with market shifts, Telly emphasizes the importance of supporting small, family-run farms. “We should be trying to promote people like us because not very many are left around. I was born here 73 years ago, and there’s only one or two left.”

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