The United States declared Monday that it will end a 2019 deal with Mexico that earlier kept antidumping duties from being imposed on imports of tomatoes. The action will bring new duties to most Mexican tomato imports on July 14, as the Department of Commerce attempts to protect American farmers from what it describes as unfair competition.
“The current agreement has failed to protect US tomato growers from unfairly priced Mexican imports,” the Department of Commerce said in a statement.
The Commerce Department stated that after the agreement expires, it will be issuing an antidumping duty order with a 20.9 percent tariff rate on the majority of tomato imports from Mexico. The ruling will significantly affect fresh tomato trade since Mexico now accounts for the lion’s share of US tomato import supply, the US Department of Agriculture data showed.
Tariffs Part of Wider Trump Trade Strategy
The trade policy move is in keeping with President Donald Trump’s overall economic agenda since his White House return. The administration escalated tariffs across a range of industries and trading partners, including applying levies on steel, aluminum, and cars. Trump has defended the actions as necessary steps to address imbalances in international trade.
“This action will allow US tomato growers to compete fairly in the marketplace,” the Commerce Department stated.
“Antidumping and countervailing duty orders provide American businesses and workers with a mechanism to seek relief from the harmful effects of the unfair pricing of imports,” it added.
Impact on US-Mexico Agricultural Trade
The cancellation of the 2019 agreement would exacerbate tensions over trade between the two neighbors, particularly since the fresh produce sector is a sizeable part of bilateral agricultural commerce. The imminent 20.9 percent tariffs will hit the majority of Mexican tomato exporters, potentially increasing the cost for US consumers and shattering supply chains.
As the July 14 deadline draws near, American importers and retailers will likely prepare for pricing and logistical changes, while US farmers look ahead to what they expect will be a more balanced playing field.
