The US government has revealed its intention to impose nearly 21% tariffs on the majority of tomatoes imported from Mexico this summer, arguing that the existing deal fails to “protect” American tomato farmers from “unfair imports from Mexico.”
The Commerce Department announced on Monday that it will withdraw from the 2019 trade agreement with Mexico, and an “anti-dumping obligation order” is set to take effect on July 14th.
“This move will allow tomato farmers to compete fairly in the marketplace,” stated the Commercial sector. I stated in the announcement on Monday.
During President Trump’s initial term, the US government secured a deal with Mexican tomato producers to avert a 25% tariff on the products.
The 2019 agreement included enforcement measures, such as an inspection mechanism to prevent low-quality tomatoes from being imported and the setting of prices for different types of products.
In early 2019 during President Trump’s first term, the US government warned about withdrawing from current agreements and enforcing collection obligations from Mexico due to complaints from Florida farmers alleging that Mexico City was suppressing crop prices and thus manipulating Washington.
Mexico, a key trading partner, is the leading tomato supplier to the United States, along with other vegetables and fruits.
Mexico and the United States are entangled in additional disputes. Earlier this year, Trump threatened to impose further tariffs on Mexico after the deadline for delivering water to the United States from the Rio Grande River, as outlined in the 1944 treaty, was missed.
On Friday, Mexican President Claudia Sheinbaum announced that Mexico would provide Texas farmers with “immediate” water.
