The Price of Your Pizza Just Got Higher: Tomato Tariffs Hit Home

Money Explainers

15/7/2025

Rising prices on Mexican tomatoes could squeeze small businesses and consumers. Is your wallet ready for the impact?
Another round of tariffs, another wave of uncertainty. How will the US-Mexico trade dispute reshape your grocery bill?
Restaurant owners face bankruptcy as tomato prices soar. The human cost of tariff policy is real.
#SmallBizStruggle #TradeWars #TomatoTariffs

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00:00Today, a nearly three-decade-old trade agreement hangs by a thread.

00:04The United States is poised to impose a 20.9% tariff on most Mexican tomato imports,

00:11a move with immediate and potentially devastating consequences for businesses and consumers alike.

00:17With two Argentine-Italian restaurants in Southern California,

00:20Razzo relies heavily on tomatoes for everything from salads to marinara sauce.

00:24U.S. growers, through groups like the Florida Tomato Exchange,

00:28argue that the agreement failed to protect them from dumping the sale of cheap.

00:32Mexican exports that undercut domestic products, they believe it's time for these tariffs.

00:38Experts predict consumer prices could rise by about 10%, with demand potentially falling by 5%.

00:44Some, like Apollonia's Pizza, might try to absorb the increased costs.

00:49But it's an unsustainable strategy for most.

00:51The reality is, for many, the price of a tomato and the viability of their businesses

00:57now deeply uncertain.

00:59Teresa Razzo is actively seeking domestic sources, but the speed and scale needed are a monumental

01:05challenge.

01:06The uncertainty created by these last-minute tariff changes is causing significant instability

01:11and fear for business owners already navigating a stressful industry.

01:16The U.S. is Mexico's top market for tomato exports, accounting for a staggering 93% of U.S.

01:22tomato imports during certain seasons.

01:25This dependence means the tariffs will undoubtedly translate to higher prices at the grocery store

01:30and your favorite eateries.

01:32She fears her businesses could go bankrupt within three months if she can't find affordable

01:36alternatives.

01:37They insist that existing agreements have been fulfilled and that Mexican imports have consistently

01:42undergone thorough audits.

01:44Her story highlights the vulnerability of small businesses caught in the crossfire of international

01:49trade disputes.

01:49This isn't just about tomatoes.

01:51It's a stark example of a chaotic tariff policy shaking global trade.

01:56For restaurant owners like Teresa Razzo, the impact is dire.

02:01This tariff surge comes as the Commerce Department withdraws from the tomato suspension agreement,

02:06which has been in place since 1996.

02:08However, Mexican growers like Walberto Solorio dispute this claim, calling the decision more political

02:14than commercial.

02:15The numbers paint a clear picture.

02:19Field-grown tomatoes cost U.S. shoppers about $1.70 per pound as of May 2025, while some large

02:26companies like Heinz and DiGiorno use domestically grown tomatoes and may avoid the immediate impact

02:32many small businesses cannot.

02:34The debate continues.

02:36Domestic growers assert they can meet demand year-round thanks to technological advancements,

02:41while Mexican producers emphasize their consistent compliance with trade laws and quality inspections.

02:48Money expires

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