17.5% tariffs on Mexican tomatoes.

man and woman holding wine glasses

Photo by rawpixel.com on Pexels.com

While we frequently hear “tariff” and “China” in the same sentence, we will likely now start hearing “tariff” and “Mexico” more frequently as the Trump administration has placed near tariffs on imports of fresh tomatoes from Mexico.

A little background – in 1996 the US did not pursue tariffs on Mexican tomAatoes based off assurances from Mexican tomato growers would not sell their tomatoes at articially lower prices. However, last year Florida tomato growers requested the Trump administration to investigate whether Mexican tomatoes were being sold at articially low prices. In February 2019, the Trump administration issued a notice they would withdraw from the 1996 agreement on May 7th if a new deal could not be reached. Since no agreement was reached, Mexican tomatoes are now subject to a 17.5% tariff. If a subsequent investigation finds no unfair pricing, then any tariffs paid will be refunded.

Questions about the tomato tariffs, call/text David Hsu at 832.896.6288 or email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

American Farm Bureau Federation supports Commerce Department anti-dumping investigation of Mexican tomatoes.

close up of tomatoes on wooden table

Photo by Pixabay on Pexels.com

The U.S. Department of Commerce will resume anti-dumping investigations into imports of Mexican tomatoes despite a previous agreement not to.

Zippy Duvall, President of the American Farm Bureau Federation indicated an anti-dumping investigation was needed because Mexican producers have increased their market share despite an agreement to ban artificially low prices.

On February 6, 2019, the Department of Commerce notified Mexico they would withdraw from the 2013 Suspension Agreement on Fresh Tomatoes from Mexico under a clause that the signatories may withdraw from the Agreement with “ninety days written notice to the other party”. The expiration of the 90-days is May 7, 2019.

After the withdraw on May 8th, an investigation by the Department of Commerce will continue and will send notification to the International Trade Commission of its final determination.

If you are an importer of Mexican tomatoes or want to know how this may impact you, contact antidumping duty attorney David Hsu at attorney.dave@yahoo.com or by phone/text at 832.896.6288 for a no cost or obligation consultation.