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Governor Katie Hobbs, Business Leaders Release Statements on President Trump Leaving the Tomato Suspension Agreement

Phoenix, AZ – Today, President Trump left the Tomato Suspension Agreement, hiking tariff taxes on Mexican tomatoes by 17%. According to a study by Texas A&M, the decision will put $8.33 billion in economic activity at risk and threaten over 50,000 agribusiness jobs in Arizona and Texas. Arizona Governor Katie Hobs was joined by affected business leaders and elected officials in denouncing the decision:

“Donald Trump’s reckless trade war is raising prices, threatening our economic growth and killing jobs,” said Governor Katie Hobbs. “With his latest senseless decision to leave the Tomato Suspension Agreement, he is threatening to kill over 50,000 jobs between Arizona and Texas and forcing Arizonans to pay more at the grocery store, all to benefit Florida farmers. Arizona businesses and families will pay the price for this tax hike that is the latest step in the administration’s reckless trade war.”

"This decision will damage trade imports and have severe consequences for Nogales in revenue, employment and trade,” said Nogales Mayor Jorge Maldonado. “This is detrimental for the city, state, and country, and negatively affects U.S. consumers and businesses. We must not forget that Mexico feeds America through the border of Nogales, Arizona, and has been doing so for the last 100 years. It is up to Arizona and Sonora to challenge this decision and make sure Washington is aware of these impacts."

"I am not sure people understand the full significance of this,” said Chamberlain Distributing President and Owner Jaime Chamberlain. “It may seem simple to say that the US is withdrawing from the agreement, but there needs to be consideration for the dozens if not hundreds of Arizona and US companies and the thousands of local and regional jobs that will be lost if this is allowed to happen. And when you combine that impact with the much higher prices that consumers will pay for quality tomatoes year-round, it is hard to understand why the US has taken this posture.”

“Plentiful, high quality, affordable food is dependent on strong regional supply,” said Mónica Villalobos, President and CEO, Arizona Hispanic Chamber of Commerce. “This is particularly true for fresh fruits and vegetables, including tomatoes. And the businesses in place to grow, sell, use, and move this commodity help power the Arizona economy as well as elsewhere in the West. A tariff on Mexican tomatoes means fewer, more expensive, less flavorful tomatoes, and the loss of tens of thousands of jobs for our fellow Arizonans.”

"After 30 years of consistency, this abrupt policy change will hurt our economy and negatively impact Arizona's food system,” said Local First Arizona CEO Kimber Lanning. “The policy will shift costs to Arizona small businesses, restaurants and grocers, which will raise prices, slow hiring and threaten livelihoods. Consumers will see immediate price increases as small businesses and local communities ultimately pay the price.”

“Arizona and Governor Hobbs have been out front in the efforts to seek continuation of the Tomato Suspension Agreement,” said Lance Jungmeyer, President, Fresh Produce Association of the Americas. “As the U.S. importers and distributors of vine-ripened, greenhouse-grown tomatoes from Mexico, our members are proud of the work they do to bring consumers the fresh, flavorful varieties of tomatoes that they demand, and we are equally proud of Gov. Hobbs for standing up for economic security and jobs in Arizona.” 

"The decision to rescind the Tomato Suspension Agreement (TSA) would have far-reaching and damaging consequences for our economy, workforce, and American families. The TSA has long ensured a stable, affordable supply of high-quality tomatoes, supporting jobs across agriculture, logistics, retail, and food service industries. Without it, tariffs and supply disruptions will raise prices for consumers and threaten thousands of jobs in states like Arizona,” said Greater Phoenix Chamber President and CEO Todd Sanders. “This agreement is a model of fair trade, balancing access to Mexico’s ideal growing conditions with protections for U.S. growers and consumers. Ending it risks destabilizing a critical food supply chain at a time when Americans are already grappling with inflation."
 

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