Tomato Prices Also Threatened... U.S. Tariffs Raising Table Prices

[Financial News]  There is a forecast that tomato prices could soar due to the tariff war of the Donald Trump U.S. administration. 

CNN reported on the 13th that if the suspension of tariffs on Mexican tomatoes is abolished from the 14th (local time), the price of tomatoes on American tables could soar.

The U.S. Department of Commerce announced in April that it would withdraw from the tomato tariff suspension agreement. If the suspension, which has been in effect for nearly 30 years since 1996, is abolished, a 20.9% tariff will be imposed on Mexican tomatoes.

Timothy Richards, a professor of agricultural management at Arizona State University, predicted, "If tariffs are imposed, tomato prices could rise by about 10% and demand could decrease by 5%."
According to the U.S. Bureau of Labor Statistics, as of May, the consumer price of field-grown tomatoes is $1.7 per pound (about 2340 KRW).

There is also a forecast that if tomato prices rise, places that use tomatoes, such as pizza shops, could also see price increases.
Teresa Lazo, who runs the restaurant Villa Roma in Southern California, expressed concern in an interview with CNN that if the price of Mexican tomatoes skyrockets due to tariffs, the restaurant could go bankrupt. Her restaurant uses tomatoes to make marinara sauce for salads, pizzas, and pasta.

Lazo said, "If we raise food prices, people who used to dine out three times a week may now only be able to dine out once or twice."

Not everyone is against the imposition of tariffs. Robert Genter, vice president of the Florida Tomato Exchange in the U.S., said that the tariff suspension agreement has harmed American farmers.

Food company Heinz also uses American tomatoes for ketchup sold in the U.S., so it is not expected to be affected by the tariffs.

y27k@fnnews.com Seo Yoon-kyung Reporter