Tomatoes Prices To Skyrocket In Michigan Due To Tariffs

President Donald Trump made it clear during his campaign that he would begin the process of imposing tariffs on foreign countries for the goods they are importing into the United States. For decades, they have been able to import for free, and this has helped the prices in America stay affordable. Now that this is changing, so are the prices on many products.

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The tariffs started by hitting the automotive industry first as many of the items used in manufacturing plants are from Canada and Mexico. The tariffs also came down hard on the online shoppers who were ordering things from foreign companies, this also caused major backups on shipping. The latest product to be hit by tariffs would be found in your local grocery store.

Spending More Money On Tomatoes? Here's Why

Tomatoes are the latest product to see prices rise due to tariffs. The United States pulled out of a 30-year trade agreement with Mexico which provides roughly 80-90% of America's tomatoes. News Channel 3 reports:

The Trump administration officially withdrew from a 1996 trade deal that set minimum pricing standards on imported Mexican tomatoes. As of this week, fresh tomatoes from Mexico are now subject to a 20.9% tariff.

This could lead to prices for fresh tomatoes in grocery stores all over Michigan to rise 10 to 15 cents per pound. Many restaurants, especially those that serve authentic Mexican cuisine are concerned and think the price hikes could cause them to rethink or change some of their recipes.

So far, this tariff isn't expected to affect products like salsa, tomato sauce, tomato soup, pasta sauce, pizza sauce, canned tomatoes and other similar products. The U.S is a major tomato producer, but we did benefit from the growing conditions in Mexico, so there is a chance that the prices won't be high for long.