How tariffs on tomatoes could affect Arizonans’ grocery prices

President Donald Trump has placed a 17% tariff on tomatoes coming out of Mexico. In addition, economists said the rise in tariffs is having an effect on inflation, causing it to rise. What does this mean for Arizonans?

Domenico Ferraro, PhD, and Associate Professor in the Department of Economics at ASU’s W.P. Carey School of Business, joined “Arizona Horizon” to discuss the tariffs.

Dr. Ferraro said the move makes sense for states like Florida or California, which produce a lot of tomatoes, explaining why the move would be good for the farmers there.

“If you take the perspective of all the states that import tomatoes from Mexico, like Arizona for example, then the perspective is different because there is no protection of any Arizona producers, but tariffs are going to increase the prices of fresh tomatoes that we will find at grocery stores.”

Dr. Ferraro also said this won’t only affect fresh tomatoes but will also affect the price of salads, pizzas and tomato sauce products that were produced using Mexican tomatoes.

According to Dr. Ferraro, “Every time a fresh tomato crosses the border from Mexico to Arizona, the U.S. importer is going to pay a duty, a tariff of 17%, on any fresh tomato. So if the price of a tomato is $100, you are now going to pay $117.”