Feeling saucy! Trump slapping 21 p.c tariff on tomatoes coming from Mexico | EUROtoday

The Trump administration is throwing a 21 p.c tariff on tomatoes imported from Mexico, suspending an settlement the president made throughout his first time period.

Trump’s 2019 commerce settlement with Mexico can be terminated in 90 days, when a levy of 20.91 p.c can be imposed on most tomatoes coming from the nation, the U.S. Department of Commerce introduced Monday. The transfer marks the most recent motion President Donald Trump has taken in opposition to one of many largest U.S. buying and selling companions.

“The current agreement has failed to protect U.S. tomato growers from unfairly priced Mexican imports,” the division wrote in its launch. “This action will allow U.S. tomato growers to compete fairly in the marketplace.”

The new levy will take impact on July 14.

The transfer comes six years after Trump’s earlier take care of tomato growers in Mexico, the place the rising season is considerably longer that in America, stopping what might have been a 25 p.c tariff from taking impact.

At the time, the Commerce Department mentioned the U.S. imported roughly $2 billion value of tomatoes from Mexico annually.

The division wrote in September 2019: “The suspension agreement completely eliminates the injurious effects of unfairly priced Mexican tomatoes, prevents price suppression and undercutting, and eliminates substantially all dumping, while allowing Commerce to audit up to 80 Mexican tomato producers and U.S. sellers per quarter, or more with good cause.”

The settlement was struck after Florida growers requested the termination of a 2013 deal.

Mexico’s President Claudia Sheinbaum mentioned of the brand new tariff that she hopes the 2 international locations can attain a brand new settlement, including that the standard of Mexico’s tomatoes “is not substitutable by any other in the world.”

“This process has happened many times, and Mexico always comes out winning. But if this sanction is applied, Mexican tomatoes will still be exported to the US, because there’s no substitute,” she mentioned Tuesday, Reuters reported.

Mexican Agriculture Minister Julio Berdegue equally mentioned: “A 90-day window is now open. There goes to be a dialog with the United States. We are on the lookout for this settlement to be renewed.”

Monday’s announcement is the most recent in Trump’s commerce conflict with the nation’s southern neighbor. The president in February introduced he was imposing a 25 p.c tariff on items imported from Canada and Mexico to carry the nations “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”

Trump campaigned in opposition to excessive meals costs, and vowed to carry them down as quickly as he gained the White House. He has mentioned he received the election on “groceries.” Instead he imposed tariffs that can enhance the value customers should pay for meals, and can lower competitors, which may even drive up costs.