As of July 14, a 20.91 percent antidumping duty will go into effect on most tomatoes imported from Mexico. The country has been a major U.S. trading partner to date and the leading exporter of tomatoes, along with other fruits and vegetables.
The decision comes after a formal withdrawal from the 2019 agreement, which the Commerce Department says failed to adequately protect U.S. growers from competition deemed “unfair” by Mexico. The new tariff also responds to pressure from Florida producers, who accuse Mexican rivals of keeping tomato prices artificially low.
Agricultural antidumping duties are trade measures imposed to counteract unfair pricing practices by foreign exporters. When a foreign company sells agricultural products in the U.S. at a price lower than their production cost or market value in their home country, it is considered “dumping.” This practice can harm domestic producers by undercutting their prices.
To address this, antidumping duties are applied to level the playing field and protect U.S. farmers and agricultural businesses. These duties are calculated based on the difference between the export price and the normal value of the goods. Enforcement and compliance are managed by the International Trade Administration and U.S. Customs and Border Protection.
During President Trump’s first term in the White House, U.S. governments had reached an understanding with tomato producers in Mexico to avoid a possible 25 percent tariff. The agreement also included an inspection mechanism to prevent the import of low-quality tomatoes and regulate prices for different types of produce.
In recent times, the balance between the United States and Mexico has been tested by several disputes. These include Trump’s proposal to replace the country’s name with “Gulf of America,” which President Claudia Sheinbaum has strongly opposed. Trump also threatened new tariffs after Mexico missed the water delivery deadline under a 1944 treaty. Sheinbaum said Mexico will deliver water to Texas farmers to the extent that it is available. Now, however, he will also have to address the issue of new tariffs on tomatoes.
