On July 14, the Trump Administration is set to impose a 21-percent antidumping tariff on imports of fresh tomatoes from Mexico, terminating the Tomato Suspension Agreement (TSA) last renewed in 2019. In new research, Trade Policy Analyst Jacob Jensen estimates the forthcoming tariff’s costs to U.S. consumers.

An excerpt:

Undergirding this decision is the Trump Administration’s conclusion that Mexican tomatoes undermine domestic producers with “unfairly” low prices – although tomato imports are already subject to a price floor under the TSA that artificially raises the price of tomatoes Americans purchase from Mexico. The most likely rationale behind this move is that the Trump Administration would like to replace the import price controls to receive more tariff revenue. The forthcoming tariff on fresh Mexican tomatoes will raise U.S. prices by roughly 8 cents per pound, resulting in a 7-percent increase in prices for the overall U.S. fresh tomato supply.

Read the analysis.