WASHINGTON (Reuters) — The Trump administration announced Monday a tariff of roughly 17 percent on fresh tomatoes from Mexico, which account for two-thirds of tomatoes consumed in the United States. This move also terminates an export agreement between the two countries.
The U.S. Department of Commerce declared its withdrawal from a 2019 agreement with Mexico that had suspended an antidumping duty investigation on Mexican tomatoes. These exports to the U.S. are valued at $3 billion annually.
This decision comes as President Donald Trump’s administration seeks to renegotiate comprehensive trade deals with virtually all trading partners, following a whirlwind of tariff announcements in April.
The United States and Mexico initially struck a deal in 1996 to regulate Mexican tomato exports and address U.S. concerns about unfair competition. The agreement was last renewed six years ago to prevent an antidumping investigation and resolve a tariff dispute.
In April, Mexico expressed confidence in its ability to renew the tomato agreement, even as Washington signaled its intent to withdraw.
The Commerce Department stated that the 17.09 percent antidumping duty represents the extent to which exported Mexican tomatoes have been unfairly underpriced in the U.S. market.
\”For far too long, our farmers have been battered by unfair trade practices that undercut pricing on produce like tomatoes,\” U.S. Commerce Secretary Howard Lutnick said.
In a joint statement, Mexico’s ministries of economy and agriculture denounced the U.S. decision as unfair and detrimental to both Mexican producers and the U.S. industry.
The Mexican government pledged to support local tomato producers in seeking a suspension of the duty and in exploring new international markets.
The statement added that Mexican tomato growers had offered proposals beneficial to the U.S., but these were rejected for political reasons.
A coalition of five Mexican agricultural associations, including those from Baja California and Sinaloa, expressed their commitment to working with the Mexican government to find solutions.
\”No country in the world can replace Mexican tomatoes in a market we’ve built through innovation and hard work over the past 120 years,\” they stated.
Before Monday’s announcement, some experts and Trump’s Democratic opponents warned of potential price hikes for tomato products.
\”Salsa will be pricier, shelves emptier, and groceries more expensive,\” U.S. Representative Sylvia Garcia posted on X on Friday.
Separately, on Saturday, Trump threatened a 30 percent tariff on Mexican imports starting August 1, following weeks of failed negotiations for a comprehensive trade deal.
U.S. growers have long sought protection from Mexican competitors who can often produce tomatoes year-round.
The 2019 agreement was intended to set a price floor and allowed for U.S. border inspections of crops. However, U.S. growers have consistently argued that the arrangement had too many loopholes enabling the dumping of Mexican produce.
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