Prices for Mexican tomatoes expected to increase 40% to 85% with new tariff.
Whether you consider it a fruit or a vegetable, prices for fresh tomatoes are likely to skyrocket.
On Tuesday, the Commerce Department announced the termination of the 2013 Suspension Agreement on Fresh Tomatoes from Mexico.
This means the U.S. will impose a 17.5% tariff on imported Mexican tomatoes, a move that experts say may lead to shortages and price hikes.
According to estimates from Arizona State University, consumers could pay 40% to 85% more for vine-ripe and other fresh tomatoes.
Prices could rise 40% from May to December, according to the university analysis by economists led by Timothy Richards, the Morrison chair of agribusiness. During the cooler months, when there are fewer domestic supplies of tomatoes, prices could escalate up to 85%, according to the estimate.