Why Washington's New Beef with Mexican Airlines & Tomatoes Matters for Your Cross-Border Strategy

The U.S. Department of Commerce officially terminated the 2019 Tomato Suspension Agreement, a move aimed at halting what officials describe as "unfair pricing" of Mexican-grown tomatoes. The decision introduces a 17% duty on all fresh tomato imports from Mexico—which currently supply nearly 70% of the U.S. market.

Commerce Secretary Howard Lutnick emphasized alignment with the Trump administration's protectionist trade policy:

"For far too long our farmers have been crushed by unfair trade practices. That ends today."

While U.S. tomato growers, especially in Florida, celebrated the move, logistics professionals are weighing the broader implications:

• In 2024, U.S. imports of Mexican tomatoes totaled $3.12 billion.
• Major crossings affected include Laredo, TX and Nogales, AZ.
• Industry experts estimate a 7% increase in fresh tomato prices in the U.S.

Border Trade Alliance President Britton Mullen warned of potential economic damage, citing risk to billions in activity and thousands of jobs: "We risk inflicting lasting damage on the U.S. economy."

Aviation Dispute Adds New Layer of Risk

Simultaneously, the U.S. Department of Transportation has escalated tensions with Mexico over aviation practices. The DOT plans to revoke antitrust immunity for the Delta-Aeromexico joint venture and restrict future charter flights, citing non-compliance with the 2015 U.S.-Mexico Air Transport Agreement.

The dispute centers on Mexico's 2023 mandate that cargo carriers relocate from Mexico City International Airport (MEX) to the more remote Felipe Angeles Airport. This has:

• Increased operational costs for U.S. air cargo companies.
• Complicated routing for hybrid carriers managing cargo across dual facilities.

DOT Secretary Sean Duffy stated, "America First means fighting for the fundamental principle of fairness." The DOT will also require all Mexican carriers to submit detailed flight schedules for review by July 29.

If antitrust immunity is fully revoked by October 25, Delta and Aeromexico would be barred from revenue-sharing and joint scheduling, although codesharing would still be allowed.

Why It Matters for Logistics Professionals

These actions create a one-two punch for cross-border supply chains. On the produce side, tomato tariffs threaten to increase prices and reduce supply predictability. On the transportation side, strained air cargo relations raise the cost and complexity of cross-border freight movement.

For shippers reliant on Mexican imports or air cargo corridors through Mexico, the near-term focus should be:

• Reevaluating sourcing strategies.
• Preparing for rate volatility.
• Monitoring regulatory developments closely.

Source: FreightWaves 1 | 2