Greenhouse Growers Take Aim At U.s. 'tomato Tax' On Mexican Imports

When nan Trump management announced a caller 17% tariff connected Mexican tomatoes, Florida-based growers celebrated nan win. They’d pushed for years to end a waste and acquisition agreement that they said grounded to support Mexican imports from flooding nan market.

But greenhouse growers, importers and manufacture groups successful Arizona and Texas are blasting nan Commerce Department’s withdrawal from nan agreement, informing that it could raise prices and costs U.S. jobs.

“There has to beryllium a amended measurement of doing business than conscionable putting duties connected products that nan consumers want,” said NatureSweet CEO Rodolfo Spielmann, who grows greenhouse tomatoes successful Arizona and Mexico.

Since President Donald Trump took agency successful January, he’s waged a sweeping waste and acquisition warfare to beforehand home industries and circumstantial governmental demands. Earlier this month, he threatened to impose a 30% tariff connected Mexico for allegedly failing to dismantle supplier cartels. But nan herb levy is distinct. It stems from nan termination of a astir 30-year-old waste and acquisition statement circumstantial to Mexican tomatoes.

Growers for illustration Spielmann hoped — and still dream — nan statement would beryllium renegotiated instead. Because NatureSweet useful connected some sides of nan border, he says it’s intolerable to standard backmost Mexican operations without besides hurting home ones.

The footprint of NatureSweet’s Arizona greenhouse could clasp 30 shot fields, Spielmann said. The company, whose tomatoes are chiefly sold successful market stores, planned to much than double its capacity successful nan United States, successful consequence to increasing request and a desire to innovate. But it has now put that description connected hold, he said, because of nan alteration successful waste and acquisition policy.

He says nan caller tariff will support Florida growers, who mostly works successful unfastened fields, astatine nan disbursal of everyone else, including consumers, who’ve grown accustomed to enjoying a wide assortment of tomatoes grown successful greenhouses year-round.

“We understand that there’s a request to protect nan Florida herb production, but besides we should beryllium protecting nan full U.S. herb production,” Spielmann said.

Moving much operations to nan U.S. would coming hurdles for NatureSweet. The ambiance successful Mexico is amended for increasing tomatoes, he explained. And nan partial-year H-2A visa programme for farmworkers doesn’t relationship for greenhouse operations that request labor for a afloat year.

It would “take years and a batch of money” to transportation much greenhouses to nan U.S., said Tom Stenzel, executive head of nan Controlled Environment Agriculture Alliance, whose members see greenhouse herb growers pinch operations successful nan U.S., Mexico and Canada.

Economists person warned that the caller herb tax could mean price increases of up to 10%, harming some consumers and restaurants that trust connected tomatoes. Industry groups that correspond companies that administer Mexican tomatoes successful nan U.S. opportunity their workers are now astatine risk.

“There is specified a wide action of tomatoes, and there’s truthful galore different factors that spell into bringing each those different varieties to nan shop shelf,” said Dante Galeazzi, CEO and president of nan Texas International Produce Association, which represents warehouses handling imported produce.

The White House did not respond to questions but referred NBC News to a statement Commerce Secretary Howard Lutnick gave past week erstwhile he announced nan extremity of nan waste and acquisition agreement. “Mexico remains 1 of our top allies, but for acold excessively agelong our farmers person been crushed by unfair waste and acquisition practices,” he said.

Critics opportunity nan waste and acquisition agreement’s safeguards didn’t forestall Mexican tomatoes from being “dumped,” aliases being sold astatine unfairly debased prices, successful nan U.S., contempt being renegotiated respective times successful an effort to thief level nan playing field.

“People say, ‘you’re protectionist,’’ said Tony DiMare, president of DiMare Fresh, which has operations successful Florida and California. “You’re darn correct I am.” The U.S. needs "boundaries and guidelines and waste and acquisition laws to support these countries successful check," he said.

The number of family farms has dwindled successful caller years, according to Robert Guenther, executive vice president of nan Florida Tomato Exchange, which spearheaded nan original waste and acquisition lawsuit against Mexican imports. Mexican tomatoes now comprise astir 70% of nan tomatoes consumed successful nan U.S.

“We’re talking astir 100 years of home herb proviso that we don’t want to spot spell distant and this will help,” he said. The Commerce Department’s determination to enforce anti-dumping duties is successful statement pinch tariffs imposed connected different products, he said.

Political leaders and lawmakers from some sides of nan aisle successful Texas and Arizona aren’t convinced that nan herb taxation will yet use nan U.S. A connection from Arizona Gov. Katie Hobbs, a Democrat, cited a Texas A&M study estimating that nearly 50,000 jobs successful Arizona and Texas are tied to nan import of tomatoes, jobs she said are now astatine risk.

“Donald Trump’s reckless waste and acquisition warfare is raising prices, threatening our economical maturation and sidesplitting jobs,” she said.

In June, 4 Republican lawmakers successful Arizona and Texas warned against abandoning nan statement in a letter to Lutnick. “This statement has safeguarded American jobs, stabilized markets, and driven cultivation invention without burdensome authorities interference,” they wrote.

The Republican-dominated Legislature successful Texas passed a solution opposing nan Trump administration’s withdrawal from nan agreement.

Texas Gov. Greg Abbott, a staunch Trump ally, signed it past month.