Following President Donald Trump's decision to impose tariffs on tomatoes and withdraw from a bilateral agreement that could have prevented those tariffs from taking effect, Mexico has established minimum export prices for fresh tomato exports to the United States.

In a joint statement published in the Federal Gazette on Friday, Mexico's Ministry of Economy and Ministry of Agriculture said the move would allow Mexican tomatoes to continue accessing key international markets.

The vast majority of Mexico's tomato exports go to the United States. According to the U.S. Department of Agriculture, by 2025 Mexico's tomato exports are expected to reach 2 million tons, with 1.8 million tons destined for the U.S. market. The Trump administration's newly imposed anti-dumping duties could disrupt Mexico's agricultural trade and impact thousands of jobs in the country.

Mexico's action aims to protect domestic producers from the impact of the new tariffs, safeguard domestic supply, and resist downward price pressure. Meanwhile, both countries are working toward a lasting trade agreement.

In July this year, the U.S. Department of Commerce announced that the United States would withdraw from a 2019 agreement that had suspended the investigation into whether Mexico was dumping tomatoes—selling products at less than normal value or price points—to gain a competitive foothold in the U.S. market. In addition to terminating the agreement, the Department also announced that the U.S. would impose a 17% tariff on most fresh tomatoes imported from Mexico.

Given their reliance on the U.S. market, Mexican tomato exporters have warned that the tariff could seriously destabilize the industry. Moisés Atri, export director of producer Veggie Prime, told the Associated Press that their profit margins were too thin to absorb the new tariff, and expressed hope that U.S. retail customers might share some of the costs.

However, according to Reuters, Friday's statement was aimed at easing some of these challenges. The move has gained support from Mexican tomato producers. Setting minimum export prices can help exporters avoid a “race to the bottom” that erodes profit margins, maintain market stability, and ease trade tensions arising from dumping allegations.

Georgina Félix, operations director of the Fresh Produce Association of the Americas, told Bloomberg that the measure was intended to “help growers avoid future increases in anti-dumping duties.”

Mexico has set minimum export prices per kilogram for various varieties of fresh tomatoes: cherry and grape tomatoes at $1.70, Roma tomatoes at $0.88, and round stem tomatoes at $1.65.

In their joint statement, Mexican authorities said the pricing order applies to final exports and does not limit export volumes or set maximum prices.

“If a minimum export price is not set, exporting tomatoes to the United States at prices below production costs could cause price distortions, disrupt the existing fresh tomato export market, and upset the order of the international market,” the Ministry of Economy and Ministry of Agriculture said.

“The purpose of setting minimum export prices is not to restrict volumes, set maximum prices, or distort the market,” the statement continued, “but to strengthen and maintain the existing order in the fresh tomato export industry.”

When announcing the new tariffs in July, U.S. Commerce Secretary Howard Lutnick said: “Mexico remains one of our most important allies, but for far too long, our farmers have been hurt by unfair trade practices that have depressed prices for agricultural products such as tomatoes. That ends today. This rule change is in line with President Trump's trade policies and approach toward Mexico.”

Mexican President Claudia Sheinbaum responded to the tariff announcement by saying: “Mexican tomatoes will continue to be exported to the United States because U.S. demand cannot be met by tomatoes produced anywhere else in the world, even with the additional 17% tariff.”

The ministries stated in Friday's announcement that the minimum export prices would be reviewed at least annually, or earlier “if market conditions require.”

At the end of July, Trump said he had delayed the tariff increase on Mexico by 90 days, “with the goal of signing a trade agreement within 90 days or longer.”

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