The Trump administration is imposing a 17% tariff on most fresh Mexican tomatoes, bringing an end to a nearly three-decade-old agreement that had spared the produce from anti-dumping duties.
00:00In other news, the Trump administration is imposing a 17% tariff on most fresh Mexican tomatoes.
00:07This marks the end of a nearly three-decade-old agreement that had spared the produce from anti-dumping duties.
00:16U.S. Commerce Secretary Howard Latnik argued the decision was made as American farmers have suffered from unfair trade practices that undercut produce prices, including tomatoes.
00:27The Commerce Department had announced its intention to exit the agreement back in April, arguing it had failed to protect U.S. tomato growers from unfairly priced Mexican imports.
00:38Mexico currently supplies nearly 70% of tomatoes in the U.S., compared to about 20% in 1994.
00:45The tomato suspension agreement, first signed in 1996, was meant to halt duties after a U.S. trade court found Mexican exporters were selling tomatoes at artificially low prices.
00:57Under the deal, tariffs were suspended as long as Mexican producers did not sell below agreed-upon reference prices.
01:05Mexico's economy and agriculture ministries have condemned the move as unjust and detrimental to both Mexican producers and the U.S. industry.
01:13The U.S. withdrawal from the agreement comes as Mexico races to strike a broader trade deal by August 1st, or face a general 30% tariff on its goods.
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