US closes deal avoiding 25% tariff on Mexican tomatoes

WASHINGTON – The U.S. Department of Commerce says it has finalized a deal with Mexican tomato producers to prevent what it calls unfairly cheap produce from reaching American consumers, heading off a potential 25 per cent tariff.

Secretary of Commerce Wilbur Ross said Thursday the agreement “protects U.S. tomato producers from unfair trade. It also removes major uncertainties for the Mexican growers and their workers.”

The U.S. imports about $2 billion of Mexican tomatoes annually.

The agreement sets minimum prices for Mexican tomatoes, including a 40% premium on organic imports.

The deal was tentatively reached last month after the Florida Tomato Exchange in 2018 requested a probe into alleged dumping and price suppression.

The commerce department says the deal will benefit tomato producers across America, including those in Florida, Texas and Arizona.