Holy guacamole! Prices for tomatoes, avocados could skyrocket with Mexico tariffs

Californians looking to stretch their savings may be saying, “Hold the tomatoes, please,” as President Donald Trump’s tariff on Mexican food imports threatens to raise the price of popular grocery store staples.

You could soon be paying up to 85 percent more for a vine-ripened tomato, according to the Fresh Produce Association of the Americas.

And California’s beloved avocado? Prices for Mexican Hass avocados are the highest they’ve been since August 2017, according to Bloomberg. The association argues the tariffs won’t help bring the cost down, contending they’ll have American’s paying $3 billion more for produce this fall..

“The latest threat from the president will harm American consumers and U.S. businesses first and foremost,” said association president Lance Jungmeyer.

Trump proposed the tariffs — 5 percent beginning June 10 and moving up to 25 percent by October —as part of a strategy to curb illegal immigration. He wants to pressure Mexico to do more to keep Central American migrants from traveling north to the U.S.

Democrats, business groups and even many Republicans are raising objections about Trump’s plan. California Gov. Gavin Newsom this week called the tariffs a “massive, across-the-board tax increase.”

Mexico is America’s third largest trade partner, and more than $1.6 billion is spent in two-way trade between the two countries each day. Mexico also accounts for nearly a fifth of California’s export market.

The U.S. Department of Agriculture lists Mexico as a major trade partner of the U.S. The food import industry is worth $3.7 billion alone; beverages total another $3.8 billion, while crop and animal production is worth another $1.6 billion.

“These Trump tariffs are just taxes by another name,” said Rep. TJ Cox, D-Fresno. “Our ranchers, farmers and families of the Central Valley have suffered enough during this ridiculous trade war.”

The U.S. Chamber of Commerce conducted an analysis of the state-by-state impact of the tariffs; California will lose $2.2 billion when the 5 percent tariff goes into effect and more than $11 billion once the full tariff is in place.

The U.S. overall stands to lose more than $86 billion in revenue if the tariff remains, according to the chamber.

Sen. Dianne Feinstein said in a statement that the tariffs, “will be particularly bad for California.”

“The president’s plan is unnecessary, disruptive and chaotic. It invites a response from Mexico that will inevitably lead to a trade war,” Feinstein, D-California, said.

Trump defended his tariff in a tweet on Thursday, citing support from House Minority Leader Kevin McCarthy, R-Bakersfield.

“House Republicans support the President on Tariffs with Mexico all the way, & that makes any measure the President takes on the Border totally Veto proof. Why wouldn’t you as Republicans support him when that will allow our President to make a better deal,” Trump wrote, attributing the comments to McCarthy.

But other Republican leaders say they disapprove of the tariffs.

Senate Majority Leader Mitch McConnell said that “there is not much support in my conference for tariffs,” a sentiment echoed by Sens. Ron Johnson of Wisconsin and Ted Cruz of Texas, according to The Associated Press.

“I think the administration has to be concerned about another vote of disapproval. ... I’m not the only one saying it,” Johnson said.

“I will yield to nobody in passion and seriousness and commitment to securing the border, but there’s no reason for Texas farmers and ranchers and manufacturers and small businesses to pay the price of massive new taxes,” Cruz said.

This story was originally published June 5, 2019 at 3:44 PM with the headline "Holy guacamole! Prices for tomatoes, avocados could skyrocket with Mexico tariffs."