US tomato prices could jump as soon as Monday

CNN If tomato prices jump because of new tariffs on the Mexican-grown produce restaurant owner Teresa Razo says her businesses could go bust I give it three months and then we go bankrupt disclosed Teresa Razo owner of two Argentine-Italian restaurants in Southern California On July a nearly three-decade-old US-Mexico arrangement agreement may give way to tariffs on majority Mexican tomato imports That could mean higher prices for Americans at the grocery store at the pizza parlor anywhere that uses tomatoes And for a few small businesses higher prices could close them down entirely The tomato tariffs are among the latest examples of President Donald Trump s chaotic tariff program which has shaken up global arrangement left companies uncertain how to plan for the future and made Americans nervous about where the world s biggest market system could be headed Field-grown tomatoes cost US shoppers about per pound as of May according to the Bureau of Labor Statistics Consumer tomato prices could rise by about and demand may fall by as a upshot of these tariffs according to Timothy Richards a professor of agribusiness at Arizona State University The United States is the top domain for Mexican tomato exports according to the US Department of Agriculture In a June document the department uncovered that the new tariffs would likely lead to a drop in tomato imports and higher prices Specific US growers say it s about time for the tariffs which are meant to fight dumping or the practice of selling cheap exports into a foreign territory to undercut homegrown products The Tomato Suspension Agreement has been in place since essentially setting a floor for tomato imports The Commerce Department broadcasted in April it was withdrawing from the agreement because the current agreement has failed to protect U S tomato growers from unfairly priced Mexican imports according to a comment That in turn will consequence in the duties on preponderance Mexican tomato imports For more than three decades five consecutive agreements have failed to stop the illegal dumping of unfairly priced tomatoes into the U S region from Mexican producers Robert Guenther executive vice president of the Florida Tomato Exchange recounted CNN in a report Guenther added that he believes the contract agreement has harmed American farmers It s an accusation disputed by Walberto Solorio a Mexican tomato grower and president of the Baja California Agricultural Council which represents more than tomato growers Solorio explained a CNN producer that small violations by certain Mexican producers have not been enough to warrant the collapse of the entire agreement I see it as more of a political issue than a commercial one not logic or numbers Solario commented Everything indicates within reason that the agreement should prevail and that the agreement has been fulfilled Instability and fear Consumers and businesses may feel the pinch Somebody that would dine out three times a week maybe now they ll do it once or twice because we have to increase our prices disclosed Razo who demands tomatoes for salads and for marinara sauce in pizzas and pastas at her restaurants Villa Roma in Laguna Hills and Cambalache Grill in Fountain Valley But specific companies will avoid the tariffs because they use US-produced tomatoes Heinz uses only domestically grown tomatoes for its ketchup products sold in the United States DiGiornio also states on its website that its frozen pizza sauces are made with California-grown tomatoes And a few small businesses like Appollonia s Pizza in Los Angeles might eat the cost of using Mexican tomatoes for its toppings instead of passing it on according to co-owner Justin De Leon But not everyone can afford that Razo is trying to source tomatoes from domestic growers instead but if she can t find US tomatoes fast enough she might have to raise menu prices With often last-minute changes to tariff implementation this year she s stopped following the news every day for her mental physical condition She announced she ll take a wait-and-see approach with the tariffs before devising a strategy and added that the tariffs have created instability and fear We don t need more of that Razo noted We already have enough Guenther explained American tomato growers can produce enough tomatoes year-round thanks to technological advancements and geographic diversity across the United States Terminating the agreement would still allow Mexican producers to sell tomatoes in America they d just have to comply with transaction laws But Solorio declared Mexican imports have been subject to thorough quarterly audits We have complied with the minimum reference prices with the reports with the edge quality inspections he explained De Leon disclosed Appollonia s Pizzeria uses Mexican tomatoes for its fresh tomato toppings while its sauce is made with California tomatoes He changes where he buys his tomatoes from to get the best in-season produce year-round switching from California to Mexico tomatoes depending on the season Tariffs on key ingredients like cheese are already costing him more and can be just another headache in a stressful business I just hope it comes to an end soon De Leon announced