Termination of tomato agreement could cause higher prices across U.S., TIPA says

The Texas International Produce Association says that if the U.S. Department of Commerce terminates the U.S.-Mexico Tomato Suspension Agreement this summer, Americans could soon face higher tomato prices, job losses and disruptions across national food supply chains.

Last month, industry leaders gathered for a press conference at Traveler Produce in Pharr, Texas, to call on federal officials to preserve and modernize the TSA, which has been in place for nearly three decades.

“The Tomato Suspension Agreement works. We need access to more fresh produce, not less. For the sake of our health, our communities’ economic wellbeing and our taste buds, we must preserve and modernize this agreement rather than dismantle it,” said TIPA President and CEO Dante Galeazzi.

The proposed termination, scheduled to take effect July 14, 2025, would impose a 21% anti-dumping duty on Mexican tomatoes.

“South Texans need economic stability, not chaos and higher prices. The termination of the Tomato Suspension Agreement will be detrimental to produce prices in Texas and the Rio Grande Valley. About 50 percent of all Mexican tomatoes enter through ports of entry in the Rio Grande Valley and are an essential food in our community. I have always been a staunch advocate for more fair trade between our trading partners, but the termination of this agreement will cause us more harm than good,” said U.S. Rep Vicente Gonzalez (D-TX)/ 

According to a 2025 economic study conducted by Texas A&M University’s Center for North American Studies, the U.S. imported $3.12 billion worth of fresh tomatoes from Mexico, supporting 46,936 American jobs, including an impact to the total U.S. economy of over $8.33 billion.

"In other words, for every $1 of Mexican tomatoes imported, the U.S. receives $2.67 of domestic economic benefit," TIPA said in a statement.

TIPA strongly urges policymakers, industry stakeholders and the public to advocate for preserving and modernizing the Tomato Suspension Agreement.

"Termination would mean a shortage of fresh tomatoes at the supermarket, price hikes at the grocery store and widespread job losses across multiple sectors," TIPA said in a statement. "Maintaining this agreement is essential to safeguarding American consumers, supporting fair trade practices and protecting tens of thousands of U.S. jobs."

The CEA Alliance has also called for the agreement to be renegotiated.