Florida’s tomato tariff would cost Texans
As mayor of San Antonio, my priority is to ensure we are building a city where every family has the chance to thrive. For many, this goal has sometimes felt harder in the wake of the pandemic. We all feel the effects of increased costs, particularly at the grocery store or a favorite restaurant.
Yet as many policymakers are taking steps to reduce the pain of inflation and ensure families have the resources to thrive, a single trade group in Florida is working to impose a new “tomato tax” that would further increase grocery prices to enrich the few at the expense of the many, particularly those here in South Texas.
A small group of tomato growers, known as the Florida Tomato Exchange, is attempting to eliminate the Tomato Suspension Agreement, a longstanding trade pact.
In its place would be tariffs of more than 20% on all fresh tomatoes imported from Mexico, which account for the vast majority of tomatoes enjoyed by American families.
This new tomato tax would translate to a loss of thousands of jobs nationwide and an increase in the cost of fresh tomatoes for all American consumers at a time when families already feel pressure on their pocketbooks.
While it may only seem like a single item in your grocery cart, tomatoes have an outsize impact on jobs and prices. Recent studies from Texas A&M University and Arizona State University highlight the risk if the tariff were to take effect.
U.S. consumers could expect average tomato prices to increase as much as 52% — and even more at certain times of the year. At the same time, retailers nationwide can expect a loss of more than $7.5 billion in revenue.
Texas and the Southwest would suffer the most damage from this Florida maneuver. In Texas and Arizona, economic activity could fall by almost $8 billion, translating to a loss of more than 54,000 jobs.
Many of these jobs are in South Texas. Across the region, jobs in distribution, packing, trucking, retail and other part of the supply chain would be jeopardized — all in the name of enriching a single group in Florida.
The effort by Florida growers is nothing more than an attempt to reduce competition. The truth is that many U.S. companies — such as Naturesweet based right here in San Antonio — have operations in the U.S. and Mexico to enable the year-round availability of fresh produce on our grocery shelves.
Imposing a new tomato tax would not only increase prices but also reduce the types of tomatoes available to consumers (cherry and grape tomatoes, in particular) and limit the times of year fresh tomatoes could be found.
Texas companies, communities and families shouldn’t have to bear this cost.
That is why I am proud to work with many of my counterparts through the South Texas Alliance of Cities to urge the U.S. Commerce Department to reject these new tariffs.
Texas families shouldn’t be enriching Florida millionaires.