On Monday, July 14th, the U.S. Department of Commerce announced that it will impose a 17% tariff on most fresh tomato imports from Mexico to counteract the unfair trade practices of dumping low-priced products in the U.S. market.
The Department of Commerce has issued an anti-dumping tariff order, assessing the extent of low-priced dumping of Mexican tomatoes in the U.S. market and levying tariffs to offset the price gap.
On April 15th, after withdrawing from the 2019 trade agreement signed with Mexico, the Department of Commerce reopened its anti-dumping investigation into Mexican tomato imports and implemented relevant tariff measures.
The Department stated that the previous agreement “failed to protect American farmers from the harm caused by unfair pricing of Mexican imports,” noting that they “received a large number of petitions from American tomato growers” requesting the termination of the agreement.
Commerce Secretary Howard Lutnick said in a statement, “Mexico remains one of our most important allies, but our farmers have long suffered from unfair trade practices, leading to the suppression of prices for agricultural products like tomatoes. This situation ends today.”
Lutnick indicated that this action aligns with President Trump’s current trade policy towards Mexico.
The newly announced tariff rates by the Department of Commerce are lower than the previously proposed 20.91% in April.
In response, Mexican Economy Minister Marcelo Ebrard stated that the Mexican government will strive to seek a solution with the U.S. in trade negotiations to halt these tariff measures.
Ebrard remarked that this move “will only impact the wallets of American consumers,” emphasizing that the U.S. heavily relies on fresh tomato imports from Mexico.
He stressed, “This is not only unfair to Mexican producers but also a blow to the U.S. industry. The position of Mexican fresh tomatoes in the U.S. market is based on product quality, not unfair means.”
The U.S. Department of Agriculture (USDA) stated that approximately 93% of fresh tomato imports in the U.S. come from Mexico. The USDA predicts that due to the U.S. imposing anti-dumping tariffs, Mexico’s tomato exports this year will decline by 5%.
On July 11th, the U.S. Chamber of Commerce wrote to Commerce Secretary Lutnick, urging him to delay the decision to terminate the trade agreement to allow time for negotiations with Mexico. The letter noted that the import and sale of Mexican tomatoes bring about $8.3 billion in economic benefits to the U.S.
The Chamber of Commerce mentioned that terminating the agreement could lead to Mexico taking retaliatory measures, causing greater difficulties for American businesses and consumers.
President Trump announced earlier this month that starting from August 1st, a 30% tariff will be imposed on Mexican goods, as Mexico has failed to effectively curb drug trafficking organizations. Trump stated that if Mexico can improve trade barriers and successfully combat drug smuggling and the flow of fentanyl, he will consider adjusting the tariffs.