Termination of U.S.-Mexico Tomato Agreement Could Disrupt Supply Chains, Raise Grocery Costs, and Threaten Thousands of U.S. Jobs
The Texas International Produce Association (TIPA) is sounding the alarm: If the U.S. Department of Commerce terminates the U.S.-Mexico Tomato Suspension Agreement (TSA) this summer, Americans could soon face skyrocketing tomato prices, widespread job losses, and major disruptions across national food supply chains.
Last month, industry leaders gathered for a press conference at Traveler Produce in Pharr, Texas, to call on federal officials to preserve and modernize the TSA — a critical agreement that has protected American consumers and businesses for nearly three decades.
Dante Galeazzi, President and CEO of TIPA, defended the agreement saying, “The Tomato Suspension Agreement works. We need access to more fresh produce, not less. For the sake of our health, our communities’ economic well-being, and our taste buds, we must preserve and modernize this agreement rather than dismantle it.”
The proposed termination, scheduled to take effect July 14, 2025, would impose a punitive 21% anti-dumping duty on Mexican tomatoes, which industry experts and economists warn would sharply increase prices and threaten availability nationwide.
Regarding the possible termination of the TSA, Congressman Vicente Gonzalez (D-TX) said, “South Texans need economic stability, not chaos and higher prices. The termination of the Tomato Suspension Agreement will be detrimental to produce prices in Texas and the Rio Grande Valley. About 50 percent of all Mexican tomatoes enter through ports of entry in the Rio Grande Valley and are an essential food in our community. I have always been a staunch advocate for more fair trade between our trading partners, but the termination of this agreement will cause us more harm than good.”
That harm can have a huge impact on Texas and the U.S. economies. According to a 2025 economic study conducted by Texas A&M University’s Center for North American Studies, the United States imported $3.12 billion worth of fresh tomatoes from Mexico, supporting 46,936 American jobs including an impact to the total U.S. economy of over $8.33 billion. In other words, for every $1 of Mexican tomatoes imported, the U.S. receives $2.67 of domestic economic benefit.
TIPA strongly urges policymakers, industry stakeholders, and the public to advocate for preserving and modernizing the Tomato Suspension Agreement. Termination would mean: A shortage of fresh tomatoes at the supermarket, price hikes at the grocery store and widespread job losses across multiple sectors.
Maintaining this agreement is essential to safeguarding American consumers, supporting fair trade practices, and protecting tens of thousands of U.S. jobs.
For more information about TIPA, please visit www.texipa.org.
To view the Texas A&M Tomato Suspension Agreement study, please visit https://agecoext.tamu.edu/
About the Texas International Produce Association
The Texas International Produce Association (TIPA) was founded in 1942 and represents nearly 400 member companies as they educate, advocate, promote and represent on behalf of the fresh produce industry of more than $12 billion dollars that is either produced in Texas or considers Texas its first point of arrival for domestic distribution. For information, please visit www.texipa.org.
