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U.S. Imposes 17% Tariff on Mexican Tomatoes, Prompting Relief for Farmers and Outcry from Mexico

The Commerce Department reinstated the levy after terminating the 2019 pact to protect U.S. tomato growers from low-cost imports

Overview

  • The 17.09% tariff took effect July 14 when the Commerce Department withdrew from the 2019 suspension agreement to enforce anti-dumping rules.
  • Florida and California growers have reported a surge in business inquiries as domestic producers regain market share.
  • Importers and border-state distributors warn the levy will drive up grocery prices for all tomatoes because extra costs will be passed to consumers.
  • Republicans from Texas and Arizona estimate up to 50,000 jobs could be at risk in border communities dependent on tomato trade.
  • Mexico’s Economy and Agriculture ministries have lodged formal protests and are seeking to reopen bilateral negotiations with Washington.