EU, pyrrhic victory, in the tomato field

Political muscle in the United States prevailed, and Mexican tomato growers will have to pay a 17% tariff on their exports to that country.

The Florida Tomato Growers score a tremendous home run and the runs are about to be counted.

Protectionism advances in favor of American farmers.

It penalizes the efficiency and productivity of Mexican producers.

Although the Miami Tomato Growers are celebrating on the field, no corresponding cheers can be heard in the stands.

American consumers will be the ones who end up paying the tariffs their government imposed on Mexican tomato growers.

Additionally, in Mexico, the fastball launched by President Donald Trump will hit with full force in the state of Sinaloa, where the largest job losses in Mexico will be recorded.

Florida tomato growers received what they had long hoped for: the full support of their president, Republican Trump.

The Mexican team was unable to overcome the current political power of the American tomato growers.

Seven major Mexican tomato groups will be left to pay the price.

According to a report by the Agricultural Market Consultants Group, headed by Juan Carlos Anaya, the assigned antidumping margins range from 2.81% (the lowest) to 273.43%, which will be paid by four of the seven groups that will have to pay the tariff.

The four most affected are: 1. Arturo Lomelí Villalobas; 2. Ranchos Los Pinos; 3. Agrícola Yory; and 4. Eco-Cultivos.

They are followed by Ernesto Fernando Echavarría Salazar and Tamazula Horticultural Administrator with antidumping margins of 26.39 and 18.58%, respectively.

The one with the lowest margin is San Vicente Camalu with 2.81%.

This is a Pyrrhic victory for Florida tomato growers.

An additional fact is that the anti-dumping tariff does not apply to tomatoes intended for industrial processing, such as canned or dehydrated.

Mexican tomato growers will produce 3.6 million tons of tomatoes by the end of this year; they rank eighth in the world in tomato production.

Mexican producers export 60% of their production abroad, mainly to the United States (more than 99%).

In 2024, they exported 1.87 million metric tons worth $2.37 million, the highest figure in a decade.

With this tariff, tomato growers face a major challenge. We'll see.

Mexico remains calm in the face of the 30% US tariff

Mexican President Claudia Sheinbaum expressed confidence that an agreement with the United States government can be reached before the 30% general tariff on Mexican exports goes into effect.

During the morning press conference, the Chief Executive commented that Mexico is not the only country to receive a letter announcing the implementation of a tariff. It is part of the policy of President Donald Trump's administration, she noted.

However, it should be remembered that the letters President Trump is sending have been directed at those nations that apply tariffs to the US. They are part of what he has called reciprocal tariffs.

Mexico wasn't on that list. Furthermore, it was striking that the US president emphasized that Mexico hasn't done enough to combat fentanyl trafficking.

It's true that Sheinbaum's administration has made efforts and has captured and extradited a large group of drug traffickers. It's also true that, as President Trump has acknowledged, Mexico has been diligent in containing migration to the United States.

However, it seems that the US government wants more from Mexico.

Based on what the President of Mexico has stated publicly, she will maintain her policy of cooperation, dialogue, and coordination, but without subordination.

It remains to be seen whether progress can be made along this path.

Glimpses

In response to various warnings from industrial, academic, and specialized sectors regarding the lack of electricity for companies and businesses and the growing suggestions to change production schedules, the Mexican government responds that there is no major problem.

The President of Mexico downplayed the allegations in this regard.

The Federal Electricity Commission, headed by Emilia Calleja, and the National Energy Control Center (Cenace) assured that it has not been necessary to disconnect users, as sufficient reserve margin conditions have been maintained in the system.

He asserts that they have taken various actions to ensure the availability and reliability of the electricity supply for all sectors of the country.

Official figures indicate that this year, the operating reserve margin in the National Interconnected System has averaged over 12%, and at its most critical point, in May, it was 9.69%. Is this true?