The U.S. Department of Commerce on 14 July withdrew from the 2019 Tomato Suspension Agreement and immediately imposed a 17.09 percent antidumping duty on most fresh tomato imports from Mexico. Commerce officials said the move aims to counter what they described as unfairly low-priced Mexican produce that has pressured domestic growers. The duty effectively revives a trade dispute first addressed in a 1996 pact that set minimum export prices and inspection rules. “For far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes,” Commerce Secretary Howard Lutnick said. The tariff is lower than a 21 percent rate floated in April but replaces a long-standing exemption from duties. Tomatoes are one of the largest fresh-produce imports into the United States, with shipments from Mexico valued at about US$3 billion a year and supplying roughly 70 percent of U.S. consumption. Tim Richards of Arizona State University estimates that retail prices could climb about 8.5 percent under the new levy, adding to cost pressures for supermarkets and restaurants. Mexico’s economy and agriculture ministries called the decision “unfair” and said they would pursue talks to suspend the duty while helping growers find alternative markets. President Claudia Sheinbaum argued that U.S. consumers will ultimately bear the brunt because Mexican tomatoes have no immediate substitute and vowed to outline support measures for producers in the coming week. U.S. tomato growers, led by the Florida Tomato Exchange, welcomed the action, saying prior agreements had loopholes that allowed continued dumping. The tariff is the latest in a series of trade measures announced by President Donald Trump as his administration seeks new terms with key partners ahead of a threatened broader 30 percent tariff on Mexican goods starting 1 August.
A New York produce wholesaler warns that US #tomato supplies will be severely limited if President Trump imposes a proposed 17% tariff on fresh tomato imports from Mexico
WATCH MORE: A New York produce wholesaler warns that US tomato supplies will be severely limited if President Trump imposes a proposed 17% tariff on fresh tomato imports from Mexico https://t.co/theqBzfmSs
A New York produce wholesaler warns that US tomato supplies will be severely limited if President Trump imposes a proposed 17% tariff on fresh tomato imports from Mexico https://t.co/8ErdHXGdmW