Trump slaps 17 percent tariff on tomatoes from Mexico
Trump's withdrawal from the agreement to suspend anti-dumping measures on Monday came as the clock ticked down for Mexico to reach a comprehensive trade deal with the US by August 1 or face a general tariff of 30 percent on its goods.
'Mexico remains one of our greatest allies, but for far too long, our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes,' US Secretary of Commerce Howard Lutnick said in a statement.
'That ends today. This rule change is in line with President Trump's trade policies and approach with Mexico.'
The Commerce Department had in April announced its intention to exit the agreement in 90 days, saying it had 'failed to protect U.S. tomato growers from unfairly priced Mexican imports'.
Mexico supplies nearly 70 percent of tomatoes in the US, up from about 20 percent in 1994, according to the Florida Tomato Exchange.
The Tomato Suspension Agreement, which was first signed in 1996, put a hold on duties stemming from a US trade court decision that found Mexican exporters were selling their produce at artificially low prices.
Under the agreement, the US agreed to suspend the tariffs provided that Mexican producers did not sell their produce below agreed-upon 'reference prices.'
The two sides renewed the deal on four occasions, most recently in 2019.
In a joint statement, Mexico's economy and agriculture ministries condemned the move as 'unjust' and 'against the interests not only of Mexican producers but also of the US industry'.
'The gains made by Mexican fresh tomatoes in the U.S. market are due to the quality of the product and not to any unfair practices,' the ministries said, adding that the tariffs would 'only hurt American consumers' wallets, as it will be impossible to replace Mexican tomatoes.'
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