Washington (Reuters) – The U.S. Commerce Department announced on Monday that it is pulling out of a 2019 agreement that had halted an anti-dumping duty probe on fresh tomatoes from Mexico. Instead, the department will impose a 17.09% duty on most imports of tomatoes from the neighboring country.
The Commerce Department stated that the antidumping duties are meant to address the alleged selling of Mexican tomatoes in the U.S. at “unfair prices.” President Donald Trump recently threatened a 30% tariff on Mexican imports starting August 1, following unsuccessful trade negotiations with the key U.S. trading partner.
Mexico’s agriculture and economy ministries have yet to comment on the matter. However, in April, Mexico expressed confidence in renewing the tomato agreement with the U.S., which aims to ensure fair competition for U.S. producers. The agreement was first established in 1996 and was last renewed in 2019 to resolve tariff disputes and avoid anti-dumping investigations.
U.S. Commerce Secretary Howard Lutnick highlighted the impact of unfair trade practices on American farmers, particularly in the produce sector like tomatoes. Last year, Mexico exported $3.3 billion worth of tomatoes, with the majority going to the U.S.