Why have tomato prices surged nearly 40% in a year? Tomato prices have increased by nearly 40% in the past year, significantly outpacing overall food cost inflation. This surge is attributed to several factors, including a new U.S. tariff on Mexican tomatoes, adverse weather and disease impacting production in Mexico and Florida, and increased transportation costs due to higher oil prices stemming from the Iran war. These combined issues have created a unique situation leading to both a shortage of tomatoes and record-high prices.

• Tomato prices have risen nearly 40% in the past year, while overall food costs increased by 17%.
• A 17% U.S. tariff on Mexican tomatoes, implemented after withdrawing from a trade agreement, has increased costs for consumers.
• Tariffs collected on tomatoes have surged from $16,424 in 2024 to nearly $4.6 million.
• Mexico supplies nearly 90% of U.S. tomato imports.
• Bad weather and disease have reduced production in Mexico and Florida, lowering supply.
• Higher oil prices, influenced by the Iran war, have increased transportation costs for refrigerated trucks.
• The convergence of these factors has created a unique shortage and price surge for tomatoes.