Move over eggs, tomatoes are getting ready for their time in the “why are these so expensive?” spotlight. That’s because the U.S. Department of Commerce announced this week that its backing out of an agreement.
In a Monday press release, the department said it plans to withdraw from the 2019 “Agreement Suspending the Antidumping Investigation on Fresh Tomatoes from Mexico” and that the termination will be effective in 90 days. When that 90-day period is up on July 14, the department is expected to institute an antidumping duty order that will result in 20.91% duties on most tomato imports from Mexico.
According to The Hill, Mexico, is the U.S.’s largest importer of tomatoes – used in salsa, ketchup and other sauces – as well as other vegetables and fruits. It also explained that during President Donald Trump’s first term in the White House, the U.S. struck the deal with tomato producers from Mexico to prevent a possible 25% tariff on the commodity “that included enforcement provisions, including an inspection mechanism to bar low-quality tomatoes from being imported and establishing prices for various types of the commodity.”
However, the former Trump administration also threatened to withdraw from the existing agreement and levy duties against Mexico due to complaints from growers in Florida who argued that Mexico City was performing price suppression of the crop, said The Hill. Now, the new administration appears to be following up on that plan.
“The current agreement has failed to protect U.S. tomato growers from unfairly priced Mexican imports, as Commerce has been flooded with comments from them urging its termination,” the Commerce Department said Monday. “This action will allow U.S. tomato growers to compete fairly in the marketplace.”
While the current Trump administration is involved in a wide-ranging tariff war that has included tariff hikes on counties around the world, Blomberg noted that “antidumping duties are typically applied after a government investigation finds that products are flooding the US at unfair prices, making these levies slightly different than the broader tariffs in President Donald Trump’s trade war.”
Still, antidumping order is expected to make tomato prices rise in the U.S., per WDTN. Already, Audacy has talked with experts about how Trump’s other tariffs might impact the U.S. economy and make consumer goods pricier. Last month, the Bureau of Labor Statistics price index for fruits and vegetables actually declined along with overall inflation, but new tariffs kicked in this month.
“Antidumping and countervailing duty orders provide American businesses and workers with a mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States,” the commerce department said Monday. “Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties.”
It said that the department maintains 734 antidumping and countervailing duty orders as of this week. Furthermore, it said that “strict enforcement of U.S. trade law,” is a priority for the Trump administration.
