NOGALES, Ariz. (KGUN) — Do you like tomatoes? They could be much more expensive —-and a major part of Arizona’s economy could be hurt from a Federal decision that came down Monday afternoon.
The Commerce Department is imposing a 17 percent Customs duty on fresh tomatoes from Mexico. It’s the result of a long standing trade dispute where Florida tomato growers complained Mexican tomatoes were dumped in U.S. markets at unfairly low prices.
Mexican growers say they’ve captured a large share of the market not through unfair trade practices but through higher quality and more varieties.
Nogales produce importer Jaime Chamberlain says tomatoes account for two-point-six billion dollars in value crossing the border but with the customs duties adding 17 percent and the potential of tariffs stacking 30 percent on top of that, job losses could ripple across Arizona’s economy.
“We will start to see less product being planted in Mexico, therefore we will need less employees. Therefore less trucks will come into the state of Arizona to pick up that product and distribute all of the United States and Canada. With less trucks, we have less gas tax, hotel bed tax and food tax.”
Chamberlain says there will be less need for Arizona Agriculture Department Inspectors, and less gas tax revenue to build and maintain Arizona roads.
He says there’s a good supply of tomatoes right now, so that should cushion any shortages and sudden jumps in consumer prices but once winter hits, U.S. tomato fields will stop growing produce and markets will depend more on tomatoes from Mexico.
Field-grown tomatoes cost shoppers about a dollar seventy per pound as of May, according to federal statistics.
But prices could rise by about 10% and demand may fall by 5% as a result of these Customs duties, according to Timothy Richards, a professor of agribusiness at ASU.
The U.S. is the top market for Mexican tomato exports, according to the U.S. Department of Agriculture.
In a June report, the USDA found that the new Customs duties would likely lead to a drop in tomato imports and higher prices.
