Heres how a major Mexican tomato exporter is affected by Trump’s 17% tariff
Ajuchitlan, Mexico (AP) – Trump administration 17% task for fresh tomatoes Imported Mexican It has created a dilemma for the country that provides more tomatoes to US consumers than others.
The import tax, which started on July 14, is the latest protectionist movement of a administration that threatens dozens of countries, which are dozens of countries, including critical trade partner Mexico. Mexican government, a 30 % General Tariff It was planned to enter into force on 1 August.
Although the effects of tomato tariff are still in infancy, a large breeder and exporter in the center of Mexico show how a tariff targeting a single product can destabilize the sector.
Green tomato plants, between the top 10 tomatoes in Mexico, the center of Queretaro, the center of about six acres of high -tech greenhouses are spreading upwards after spreading.
Climate controlled and pest free, Ajuchitlan Veggie Prime’s greenhouses send about 100 tons of fresh tomatoes every week to produce mastronardia. Canada is the leading distributor of new tomatoes in the USA with customers including Costco and Walmart.
Moisés Atri, Export Director of Veggie Prime, said that they have exported tomatoes to the United States for 13 years and will not allow their important investments and costs to produce their tomatoes. They are also obliged to sell everything they produce until 2026 to Mastronardi.
“None of us (producers) can not meet this,” Atri said. “We need to approach our customer to set the prices because we do not make such a profit.”
In the first week of the tariff, Veggie Prime ate all the accusation. Secondly, when he agreed to increase the price of his client tomatoes by 10%, his share fell from the new cost. 56 -year -old Atri hopes that at the end of Mastronardi, he will transfer all the cost of the tariff to his retail customers.
Experts say that the tariff may cause 5% to 10% in tomato exports, and this may cause more than $ 3 billion for Mexico last year.
Mexican Tomato Producers Association said that the industry has produced 500,000 jobs.
The consulting company Group Consultant, Mercados Agrícolas General Manager Juan Carlos Anaya, said that a decline in tomato exports, which was more than 2 billion tons last year, could lead to a loss of 200,000 jobs.
When the Trump management announced the tariff, the trade department justified US manufacturers as a measure to protect artificially cheap Mexican imports.
California and Florida breeders, which produce about 11 million tons, are for most processed tomatoes of this production, but will benefit the most. Experts believe that the US will find it difficult to replace Mexico’s fresh tomato imports.
The ATRI and other manufacturers expect a planned examination of the measure within two months when US autumn and fresh tomatoes enter the production of fresh tomatoes.
In response to the tariff, the Mexican government created the idea of searching for more stable international markets.
Mexican Agriculture Minister Julio Berdegué said on Thursday that the government was looking at possibilities like Japan, but producers quickly doubted this idea, that tomatoes should be sent by plane and will increase the cost further.
Atri said that the company started to try with peppers to see whether they will give an option on a scale.
President Claudia Sheinbaum Recently, the management will examine tomato breeders to understand which support they need, especially in Mexico, the price of tomatoes in the price of tomatoes more than 10% of the effects of a decrease in small producers will investigate, he said.
