Trump tariffs: US slaps 17% duty on Mexican tomato imports; commerce department calls move fair protection for farmers

The US authorities on Monday introduced a 17% import duty on most contemporary tomatoes from Mexico, aiming to guard and revive its personal home tomato trade. The move comes after talks with Mexican officers collapsed with out reaching a brand new settlement to keep away from the tariff.Mexico at the moment provides about 70% of the US tomato market, up from simply 30% 20 years in the past. The new duty, which took impact instantly on Monday, is predicted to lift tomato costs within the US whereas benefiting American growers.Supporters of the move argue that it’s important to assist US agriculture. Robert Guenther, govt vice chairman of the Florida tomato trade, known as the tariff “an enormous victory for American tomato farmers and American agriculture.”The choice marks the tip of the 2019 tomato suspension settlement between the 2 international locations, which allowed Mexico to export tomatoes to the US below strict worth guidelines and different circumstances to keep away from being accused of dumping, promoting produce at artificially low costs.According to the US commerce department, the deal is being scrapped as a result of overwhelming complaints from American tomato producers who say they’re unable to compete pretty with cheaper Mexican imports. “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. That ends today,” stated commerce secretary Howard Lutnick.However, critics say the duty will damage shoppers by driving up costs and decreasing selection. “As an industry, we are saddened that American consumers will have to pay a tomato tax, or duty, for a reduced selection of the tomatoes they prefer, such as tomatoes on the vine, grape tomatoes, Romas, cocktail tomatoes and other specialty varieties,” stated Lance Jungmeyer, president of the Fresh produce affiliation of the Americas.Tim Richards, an agribusiness professor at Arizona State University, estimated that the tariff may push up retail tomato costs by about 8.5 per cent. Jacob Jensen, a commerce coverage analyst, stated that areas extra dependent on Mexican tomatoes may even see worth jumps as excessive as 10 per cent, whereas others may expertise a 6 per cent rise.Business teams have additionally warned of different penalties. In a letter to the commerce department, the US chamber of commerce and 30 different organisations stated the move may set off retaliation from commerce companions and hurt industries past tomatoes. “We are concerned that withdrawing from the agreement – at a time when the business community is already navigating significant trade uncertainty – could lead to retaliatory actions by our trading partners,” the letter learn.Furthermore, state leaders expressed considerations. Texas governor Greg Abbott, a Republican, and Arizona governor Katie Hobbs, a Democrat, had urged the federal government to protect the settlement to keep away from harming their native economies.The new coverage aligns with US President Donald Trump’s broader commerce strategy and comes shortly after his announcement of a separate 30% base tariff on items from Mexico and the European Union.