JULY 16 – The US is imposing a 17% tariff on most tomatoes imported from Mexico with quick impact, the federal government mentioned.
The responsibility got here into pressure after the US withdrew from a long-standing settlement with its southern neighbour, arguing that the deal “had failed to guard US tomato growers from unfairly priced Mexican imports”.
US Secretary of Commerce Howard Lutnick mentioned that “for much too lengthy our farmers have been crushed by unfair commerce practices that undercut pricing on produce like tomatoes”.
Mexico rejected accusations it had dumped its tomatoes on the US market at low costs and mentioned the recognition of Mexican tomatoes was all the way down to their good high quality.
The measure is anticipated to result in greater costs at supermarkets and eating places, reminiscent of pizza parlours and Mexican eateries.
Tomato-based pizza sauces and salsas are among the many merchandise more likely to be most hit.
About 70% of tomatoes consumed within the US are imported from Mexico, in accordance with advocacy group Florida Tomato Exchange.
Backers of the newly imposed tariff argue that it’s going to encourage shoppers to purchase tomatoes grown within the US, thereby boosting native commerce.
But the Mexican financial system and agriculture ministry mentioned it might be “unattainable to substitute Mexican tomatoes” given the amount imported from Mexico.
The Mexican authorities mentioned it might attempt to negotiate a brand new deal earlier than its producers have been hit, but additionally promised to assist Mexican tomato growers discover new markets.
US tomato growers first petitioned the US authorities for assist in 1996, arguing that they have been being undercut by Mexican growers, whom they accused of dumping their tomatoes within the US at a worth decrease than their regular worth.
In order to guard its tomato growers, the US issued an antidumping order, imposing duties on imported tomatoes to be able to make US tomatoes extra enticing to shoppers.
Since then, the 2 nations have signed 5 agreements which suspended these tariffs in alternate for Mexico agreeing to promote their tomatoes at or above a minimal worth.
It is the newest of those suspension agreements – signed in 2019 – that the US has now withdrawn from.
The US president has additionally threatened to impose 30% tariffs on all Mexican items from 1 August.
Trump mentioned this was as a result of Mexico, in his view, had not completed sufficient to cease North America turning into a “Narco-Trafficking Playground”.
Other nations, reminiscent of Brazil and China, in addition to the EU buying and selling bloc have additionally been threatened with US tariffs.
By BBC
