We’re in the midst of tomato season! But for carriers who typically transport produce, the red, juicy fruit might not be as frequent of a passenger on your trucks this summer. Why? Much of it has to do with a new economic policy the U.S. has implemented regarding tomatoes from Mexico.
The U.S. is currently undergoing an investigation in Mexico for tomato dumping to examine Mexico’s tomato export practice. The rundown: Mexico exports tomatoes to the U.S. for a price that is less than the domestic tomato price. The goal of this practice is to reap competitive advantage over domestic tomato growers in the U.S. economy. Alongside the tomato dumping investigation, the U.S. also recently implemented a 17.5% tariff on tomato imports from Mexico in an attempt to protect the U.S.’s domestic tomato growers from unfair practices.
Statistically speaking, more than half of tomatoes imported to the U.S. are from Mexico. But with the new tariff, this percentage could decrease in the coming months. So, if you are a carrier looking to transport tomatoes this summer season, it may be best to stick to domestic transports out of Florida and the Southeast U.S.
You may see a decrease in your tomato transports in the coming weeks if you are used to operating in the Southwest region, but both the U.S. and Mexico are hopeful that a negotiation can be reached soon. This will allow the U.S. to once again import Mexican tomatoes, without the high tariff.
The tomato tariff is a good reminder of how important it is for logistics and transportation professionals to stay up-to-date on economic policies. The trade war with China is another current economic issue to remain aware of. The implications of policies and tariffs like these could have a direct impact on the success of your business. Economic policies are always changing, and they are hard to keep track of - being proactive and educated will help you make the decisions that are best for your business!