U.S. Imposes 21% Tariff on Mexican Tomatoes Over Unfair Pricing

• The US will impose a 21% tariff.
• Mexico exported 1.8 million tons.
• Tariff will impact both Mexican and US producers.

The United States will begin imposing a 20.91% tariff on most imports of Mexican tomatoes starting July 14, according to an announcement made Monday by the Department of Commerce.

The measure is justified by claims that the current tariff system for these products «does not protect» US producers from «unfairly priced Mexican imports.»

The Department of Commerce stated in a press release that the 2019 trade agreement, which had prevented the imposition of 17% tariffs, has failed to protect US producers from the «unfair» pricing of Mexican imports.

This action, the statement said, aims to allow American producers to compete fairly in the market.

Reversal of the 2019 US Agreement and Its Consequences

The 2019 agreement, which established inspection mechanisms for 92% of Mexican tomato imports and set minimum price controls, will be reversed due to dissatisfaction with its effectiveness.

The Trump administration, which had implemented the agreement, is now withdrawing its support, arguing that it has not met its goals.

The Department of Commerce explained that within a 90-day period, it will withdraw from the Suspension Agreement on the Antidumping Investigation of Fresh Tomatoes from Mexico, resulting in the imposition of the stated surcharge.

In 2024, Mexico ranked among the top 10 tomato-producing countries, accounting for 24.7% of global supply, with the United States as its main destination.

According to the World Bank, in 2023 Mexico exported 1.8 million tons of tomatoes to the US, generating $2.8 billion in revenue.

This product ranks among the top five agri-food exports generating the most income for Mexico, with other major destinations including Canada, Japan, and various Latin American countries.

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Since Donald Trump’s return to the White House in January, Mexico has been one of the main targets of US-imposed customs tariffs.

Mexico has also been affected by tariffs on steel and aluminum, and surcharges on automobiles, adding further pressure on its exports.

In March, the US imposed a 25% tariff on Mexican steel and aluminum products, which was later partially suspended, but the trade relationship remains tense due to ongoing disputes over commerce and immigration.

This new tariff on Mexican tomatoes adds to a series of trade measures implemented by the Trump administration, continuing to strain commercial relations between the two countries.

While the US government justifies the tariffs as protection for its producers, Mexico faces a complex scenario where these tariffs could impact not only Mexican farmers but also the American industry that relies on importing these products.

SOURCE: EFE / Univisión