Trump Commerce Dept. cancels 2019 ‘antidumping’ deal with Mexico, imposes new 17% tariff on Mexican tomatoes

President Donald Trump has made it clear that, under his administration, the U.S. will no longer tolerate trade deals with foreign nations that place American manufacturers and producers at a disadvantage to their international competitors.

On Monday, the U.S. Commerce Department announced that it was withdrawing from one such deal, specifically involving tomatoes imported from Mexico and sold at “unfair prices” compared to U.S.-produced tomatoes, Newsmax reported.

The withdrawal from the 2019 deal that suspended an “antidumping” investigation of Mexican tomatoes will result in the imposition of an additional 17% tariff on that particular produce from south of the border.

Agreement cancelled

In a Monday press release, the Commerce Department revealed that, following a required 90-day notice, it had withdrawn from and terminated the 2019 Agreement Suspending the Antidumping Duty Investigation on Fresh Tomatoes from Mexico.

The now-void 2019 agreement was immediately replaced with a 17% antidumping duty on most Mexican tomatoes, which was calculated to counter the “unfair prices” at which Mexican tomatoes have been “dumped” in U.S. markets below production costs and home market prices, and which U.S. producers are unable to compete against.

“Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,” Commerce Secretary Howard Lutnick said. “This rule change is in line with President Trump’s trade policies and approach with Mexico.”

The release noted that the now-cancelled 2019 agreement was the fifth such deal to suspend an antidumping investigation that first began in 1996, with the others occurring in 1996, 2002, 2008, and 2013.

90-day notice given

Per the 2019 deal’s terms that required a 90-day notice before the agreement could be terminated, the Commerce Department announced in April that it intended to do exactly that, effective July 14.

At that time, the department said it had been “flooded with comments” from U.S. tomato producers urging cancellation of the deal, which would “allow U.S. tomato growers to compete fairly in the marketplace.”

Notably, it was estimated in that April announcement that the new antidumping duty on Mexican tomatoes would be nearly 21%, but that figure ended up being calculated three months later at just over 17%.

Prices for Mexican tomatoes will likely rise

The Associated Press reported that following news of the cancelled agreement, proponents of that decision by the Commerce Department cheered the “enormous victory for American tomato farmers and American agriculture.”

However, critics of the move cautioned that it would result in U.S. consumers being hit with higher prices and reduced availability of Mexican tomatoes, and experts predicted that Americans would see retail prices for that produce increase by anywhere from 6-10%.

The outlet noted that Mexican tomatoes currently comprise roughly 70% of the U.S. tomato market, an astonishing increase from around 30% just a couple of decades ago — largely because those Mexican tomatoes are often sold at low prices that sharply undercut the prices for U.S.-produced tomatoes.

Newsmax reported that the new 17% tariff on Mexican tomatoes will be in addition to the impending new 30% tariff on most Mexican goods that President Trump just announced on Saturday, and that are set to go into effect on August 1 — unless failed negotiations thus far on a new comprehensive trade deal with Mexico are rekindled and finalized in the interim.

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