Tomato trade dispute between the US and Mexico is boiling over again – with 21% tariffs due in July
Although technically they’re a fruit, tomatoes are one of the most-consumed vegetables, according to the U.S. Department of Agriculture. Among the fresh produce the nation buys from foreign countries, tomatoes often rank first or second, behind avocados.
This trade is now jeopardized because the Trump administration has revived a three-decade-old effort to limit imports.
As economists who study global trade issues affecting agricultural commodities and processed food products, we have assessed the benefits of imported tomatoes and other products on consumers and businesses. Fresh tomato imports ensure year-round availability for consumers, contribute significantly to the U.S. economy by generating billions in sales and supporting thousands of jobs, and promote competitive pricing that benefits both consumers and businesses.
New import restrictions could put all that at risk because domestic production cannot satisfy national demand. For tomatoes, like steel and other products, efforts to reverse trade imbalances can decrease consumer satisfaction and potentially destroy more jobs and economic activity than they create.
This tussle over tomatoes began in the 1990s.
At that time, unprecedented growth in tomato imports from Mexico prompted U.S. producers to ask the Clinton administration to investigate whether they were being sold at © The Conversation
