Borderlands Mexico: US ending tomato trade agreement met with praise, criticism

Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: US ending tomato trade agreement met with praise, criticism; Amports expands vehicle storage capacity at Mexican seaport; and CBP find cocaine in raspberry shipment from Mexico.

After the Department of Commerce terminated the 2019 Tomato Suspension Agreement between Mexico and the U.S. on Tuesday, reaction from trade stakeholders and public officials on both sides of the border was divided.

Tomatoes sold in the U.S. from Mexico are controlled by the U.S. Department of Commerce through the suspension agreement, which sets minimum pricing and regulates sales between growers and importers.

The debate centered around whether Mexico-based growers are dumping exported tomatoes into the U.S. at lower prices that undercut the domestic market.

“Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,” Secretary of Commerce Howard Lutnick said in a news release. “This rule change is in line with President Trump’s trade policies and approach with Mexico.” 

Along with ending the 2019 Tomato Suspension Agreement, the Trump administration has imposed a 17% duty on fresh tomatoes from Mexico.

The Florida Tomato Exchange, which has been pushing for more restrictions on Mexican-grown tomatoes for years, hailed the termination of U.S.-Mexico Tomato Suspension Agreement.

“[The] decision is an enormous victory for American tomato farmers and American Agriculture,” Robert Guenther, executive vice president of the Florida Tomato Exchange, said in a statement. “We’re grateful for the decisive, bold, and crucial action taken by the Trump administration. This decision will protect hardworking American tomato growers from unfair Mexican trading practices.”

The Florida Tomato Exchange was established to foster cooperation among Florida’s tomato growers and packers.

Since 1996, the U.S. and Mexico have negotiated five separate agreements regarding tomato imports.

In 2019, the Florida Tomato Exchange lobbied for stricter quality control on Mexican-grown tomatoes and more enforcement of import pricing.

Mexican tomato producers signed a Tomato Suspension Agreement with President Donald Trump’s first administration in 2019 to end a tariff dispute.

Mexican-grown tomatoes account for nearly 70% of the U.S. market, while U.S. growers’ share is currently around 30%.

In 2024, the U.S. imported $3.12 billion worth of fresh tomatoes from Mexico. This accounted for the majority of the total U.S. tomato imports, which were valued at $3.63 billion, according to the Observatory of Economic Complexity and Texas A&M. 

The Laredo customs district in South Texas — which includes Laredo’s World Trade Bridge and the Pharr-Reynosa International Bridge in Pharr — accounts for the majority of tomato imports from Mexico, followed by the border crossing in Nogales, Arizona.

Mexican tomato producers signed a Tomato Suspension Agreement with President Donald Trump’s first administration in 2019 to end a tariff dispute.

As part of the 2019 agreement, Mexico-based growers agreed not to sell tomatoes below a reference price, a seasonably adjusted floor price at which Mexican tomatoes can’t fall underneath and still be exported to the U.S.

In April, the Department of Commerce said the 2019 Tomato Suspension Agreement has failed to protect U.S. growers.

Jacob Jensen, a trade policy analyst at the American Action Forum, said it’s unclear if tomatoes from Mexico were undercutting U.S. growers.

“While it is true that market share for domestic producers has declined over the past few decades, it is difficult to make the case that Mexico is flooding the United States with excessively underpriced tomatoes” Jensen wrote in a recent report titled, “The Cost of a Tomato Tariff.” 

“Notably, the Tomato Suspension Agreement already accounts for this by essentially setting a minimum price for fresh tomato imports from Mexico to prevent Mexican exporters from undercutting U.S. tomato producers. As such, 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.”

Jensen said the tariffs will raise U.S. prices by roughly 8 cents per pound, resulting in a 7% increase in prices for the overall U.S. fresh tomato supply.

Trade stakeholders said the end of the agreement and tariff on Mexican imports could put billions in economic activity at risk and threaten thousands of jobs in Arizona and Texas.

Border Trade Alliance President Britton Mullen urged the Trump administration to continue to negotiate with Mexico.

The Border Trade Alliance is a non-profit organization that advocates on issues pertaining to border development and quality of life and trade in the Americas. 

“The Border Trade Alliance is disappointed that the Department of Commerce has withdrawn the U.S. from the agreement that has governed U.S.-Mexico tomato trade for decades. It’s a move that not only hits shoppers in the wallet by driving up the cost of Mexican-grown tomatoes, but it injects yet more disruption into North American cross-border trade,” Mullen said in a news release.

“We encourage the U.S. and Mexico to continue conversations with the goal of reaching a revised agreement that not only will prevent price spikes, but will also preserve the hundreds of thousands of U.S. jobs that depend on the tomato trade. Without a commonsense agreement in place, we risk inflicting lasting damage on the U.S. economy.”

Mexican President Claudia Sheinbaum said her administration will continue to negotiate with U.S. officials to remove the import duties imposed on tomatoes.

“We disagree with this action taken by the United States Department of Commerce,” Sheinbaum said, according to EFE Noticias. “It’s an existing agreement, one that was already attempted to be withdrawn, that was withdrawn, and that had to be reintroduced due to the impact it has on the economy and on American consumers.”

Sheinbaum said Mexico will continue to export tomatoes to the U.S. “even with the tariff, because there is no substitute.”

Amports expands vehicle storage capacity at Mexican seaport

Amports has invested $4.5 million in a new vehicle storage yard near the Mexican Pacific coast Port of Lázaro Cárdenas, according to Automotive Logistics.

The expansion aims to enhance storage capacity and support growing OEM demand in Mexico’s automotive export corridor. The yard has a vehicle storage capacity of 5,000 units.

“The goal is clear: to provide OEMs and logistics providers with a hub that combines strategic location, operational agility and high-quality standards,” Amports said in a statement. “Lázaro Cárdenas continues to position itself as a key link in the automotive logistics chain, and Amports reinforces that vision by investing in smart, resilient infrastructure.” 

CBP find cocaine in raspberry shipment from Mexico

U.S. Customs and Border Protection officers at the World Trade Bridge in Laredo, Texas, recently discovered alleged cocaine in a shipment of frozen raspberries.

The seizure occurred on Monday, when a CBP officer referred a 2015 tractor-trailer hauling frozen raspberries for secondary inspection. CBP officers discovered 32 packages containing 74.6 pounds of alleged cocaine within the trailer’s batteries.

The narcotics have an estimated street value of $996,114.
“The unwavering commitment and sharp instincts of our frontline CBP officers contributed to a remarkable seizure,” Port Director Alberto Flores, Laredo port of entry, said in a news release.