Local farmer says Mexican tomato tariff won't raise his prices

The United States recently terminated a long-standing tomato trade agreement with Mexico, affecting the import dynamics of tomatoes into the country. The decision has led to concerns about rising prices at grocery stores and restaurants nationwide. Bill Loretelli, a farmer from Stanislaus County, California, who has operated a family-run produce stand for over 40 years, asserts that his locally grown tomatoes, sold directly to customers, will not be impacted by the new 17% tariff imposed on Mexican tomatoes. Loretelli cultivates approximately 5,000 tomato plants annually, including various types such as grape and heirloom tomatoes. Given that his produce does not require international shipping, the tariff does not necessitate a price hike for his individual customers. However, not all aspects of Loretelli's business will remain unaffected. He also runs a small wholesale operation that supplies around 20 local taquerias and taco trucks. This segment of his business relies on imported tomatoes, which will likely see a price increase due to the tariff. Loretelli estimates that the costs for his restaurant clients could rise by 30-40% due to the higher import prices. The economic implications of this tariff vary significantly based on geography; UC Davis economics professor Ina Simonovska noted that areas closer to local production may feel less of an impact, while consumers in northern states—who rely more on imported tomatoes—might experience a sharper rise in prices. Despite the potential for increased prices in certain segments of the market, Loretelli does not anticipate a surge in customers visiting his stand. He expressed that those who are truly interested in purchasing local produce are already familiar with his business and have been regular patrons. He hopes, nevertheless, that those who do come to support family-operated farms like his continue to do so, especially as such businesses are becoming increasingly rare. Loretelli's desire to highlight the importance of local farmers reflects a broader concern in the agricultural community about the sustainability and viability of family-run farms in the face of competitive pressures from larger, industrial agricultural operations. In essence, the termination of the trade agreement has created a complex landscape for tomato prices across the U.S., with local farmers like Loretelli voicing a hopeful outlook for their businesses while still preparing for potential challenges ahead due to the rising costs associated with imported goods and changing market dynamics.