US Imposes 17% Duty on Mexican Tomatoes as Trade Tensions Rise

The US has imposed a 17.09% antidumping duty on Mexican tomato imports, ending a 2019 trade agreement. Officials cite unfair pricing harming US farmers, while Mexico calls the move unjust and warns it could hurt both economies and raise prices.

Washington: The United States is imposing antidumping duties on most imports of fresh tomatoes from Mexico, the US Commerce Department said Monday as Washington alleged its neighbour engaged in unfair trade.

US Imposes 17% Antidumping Duty on Mexican Tomatoes

The duties, set at 17.09 percent, come after Washington moved to terminate a 2019 agreement that staved off such charges.

"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," Commerce Secretary Howard Lutnick said in a statement.

"This rule change is in line with President (Donald) Trump's trade policies and approach with Mexico," he said.

Mexico is a dominant supplier of US fresh tomato imports, and the US Commerce Department said that antidumping duties are calculated to measure the percentage by which Mexican tomatoes were sold in the country at "unfair prices."

The United States had announced it was withdrawing from the tomato agreement in April, arguing that the action was meant to help American tomato growers compete fairly.

But observers have expressed concern that the duties could cause a spike in tomato prices.

Mexico Vows to Limit Impact on Its Tomato Industry

On Monday, the Mexican government said it was working with tomato producers to limit the effects of the 17 percent duty.

"We are working together to minimize the impact," President Claudia Sheinbaum said at her regular morning press conference, without giving details.

Mexican Officials Condemn Tariff as Harmful to Both Sides

Other Mexican government officials called the tomato tariff unfair and warned the move will ultimately harm Americans.

The measure goes "against the interests not only of Mexican producers but also of the US industry," officials said in a joint communique from the Mexican ministries of economy and agriculture.

The antidumping duties are the latest blow to trade after Trump this year introduced wide-ranging tariffs on partners including Mexico.

After returning to the White House in January, Trump swiftly targeted Mexican goods with a 25 percent tariff -- although he eventually exempted products covered by the US-Mexico-Canada free trade agreement signed during his first term.

Over the weekend, Trump threatened to raise the levy to 30 percent on August 1, as he pushes for a re-negotiation of the trade relationship.

Mexico is one of the economies most vulnerable to US tariffs and duties, with 80 percent of its exports destined for its northern neighbor -- which is also its largest trading partner.