Trump’s new tax on Mexico-grown tomatoes will drive higher prices for San Antonio restaurants and consumers

Editor’s note: This story was corrected to indicate that many, but not all, of NatureSweet’s greenhouses are located in Mexico.

President Donald Trump’s new 17% tariff on fresh tomatoes imported from Mexico, implemented in July, is expected to increase food costs for restaurants in San Antonio and beyond, according to industry insiders. 

Trump’s move follows the U.S. Department of Commerce’s withdrawal from a 2019 tomato suspension agreement that had previously avoided such duties. The U.S. and Mexico have reinstated five similar suspension agreements over the course of 27 years. The new tax is intended to promote domestic tomato production, according to the administration.

“Mexico remains one of our greatest allies,” U.S. Commerce Secretary Howard Lutnick said in a statement. “But for far too long, our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today.”

Lutnick also said the rule aligns with Trump’s broader trade policies toward Mexico.

Mexico accounts for more than 90% of U.S. tomato imports, according to Texas A&M AgriLife Research, making the tariff likely to disrupt supply chains and increase pricing for restaurants, especially in Texas and other states in close proximity to Mexico.

Supply disruptions

“There has to be a better way of doing business than just putting duties on products that the consumers want,” Rodolfo Spielmann, CEO of San Antonio-based tomato grower NatureSweet told NBC News.

While headquartered in the Alamo City, many of NatureSweet’s greenhouses and packing facilities are located in Mexico. In an online statement, the company is calling for the White House to negotiate for a new trade agreement to protect “affordability, food safety and the future of fresh tomatoes in America.”

Trump’s new tomato tax will have severe repercussions on the typical American consumer, company officials maintain. Shoppers soon will see fewer varieties in their supermarkets and pay more for the ones that are available.

“The sudden imposition of duties will create serious disruptions in supply, particularly for key varieties like grape and cherry tomatoes, which are largely grown in Mexico,” NatureSweet officials continued in their statement. “This decision will lead to fewer options, less availability, and higher prices in the produce aisle for both consumers and retailers.”

Pricier plates

San Antonio restaurateurs said they’re bracing for higher prices and a tougher time getting fresh tomatoes for their dishes.

U.S. consumers may not see the full effect of the trade penalties until the fall, because domestic tomatoes are currently in season, according to experts. But as reliance on imported tomatoes increases during cooler months, expect to see markups both at the market and on menus.

“Tomatoes are essential to so many dishes on our menu, and when the cost of sourcing them goes up, it puts pressure on every part of our kitchen,” Prince Blakaj, owner of San Antonio Italian eatery Mare e Monte, told the Current.

The Medical Center restaurant hasn’t raised prices since it opened last year, which means Blakaj has chosen to eat the costs himself to mitigate rising tomato prices.

“It hasn’t been easy,” he said.

While the administration’s new tomato tariff is designed to boost domestic production, Blakaj said growers simply aren’t equipped to meet demand. The restaurateur recently visited tomato growers in California and saw that reality firsthand.

“It’s clear they’re doing their best, but they just can’t keep up with the overwhelming demand — especially with such a large portion of tomatoes previously coming from Mexico,” he added.

Indeed, economists also raise the concern that higher tomato prices are hitting both restaurants and consumers amid other increases in food staples. In June, beef prices increased almost 11% from a year ago, egg prices jumped 27% and coffee prices escalated by more than 13%, according to the Consumer Price Index.

“The supply gap has made fresh tomatoes harder to source and more expensive, even for domestic-grown tomatoes,” Blakaj said. “It’s not just about one tax — it’s the ripple effect it creates throughout the whole supply chain. Small independent restaurants like ours are doing our best to hold the line. But it’s been a real challenge.”

Subscribe to SA Current newsletters.

Follow us: Apple News | Google News | NewsBreak | Reddit | Instagram | Facebook | Twitter | Or sign up for our RSS Feed

Related Stories

San Antonio coffee drinkers face higher prices as Trump’s Brazil tariffs loom

Brazil, which supplies around a third of U.S. coffee beans, will soon be slapped with a 50% tariff by the White House.

Republicans’ proposed cuts to food stamps would slash benefits to 1 in 5 Texas kids

In parts of San Antonio, roughly 30% of children rely on federal nutrition assistance, a study also shows.

San Antonio businesses, consumers will be hit especially hard by Trump tariffs, congressman warns

‘Texans do not want a reckless tariff war,’ U.S. Rep. Joaquin Castro said.

Closed San Antonio restaurants returning for Kerrville flood relief benefit

Tickets are nearly gone for the ‘Revival’ dinner series, spearheaded by restaurateur Chad Carey and featuring The Monterey, Gwendolyn, Sandbar and others.

This article appears in Jul 23 – Aug 6, 2025.