Trump slapped 17 percent a tariff on tomatoes from Mexico Trade war

American Trade Minister Howard Lootnick says American farmers “crushed” through unfair commercial practices.

The administration of US President Donald Trump has announced a 17 percent tariff on fresh tomatoes from Mexico, which led to a three -year -old agreement to spare products from dumping duties.

The withdrawal of the Trump administration came from the agreement on Monday when the watch fell to Mexico to reach a comprehensive trade deal with the United States by August 1 or facing a 30 percent general tariff for its goods.

“Mexico is still one of our greatest allies, but for a very long time, our farmers have been crushed through unfair commercial practices that undermine prices on products such as tomatoes,” US Trade Minister Howard Lootnick said in a statement.

“This ends today. This change in the base is in line with President Trump’s commercial policies and its approach with Mexico.”

In April, the Ministry of Commerce announced its intention to get out of the agreement in 90 days, saying it had “failed to protect tomato farmers from unfair Mexican imports.”

Mexico supplies approximately 70 percent of tomatoes in the United States, an increase of about 20 percent in 1994, according to the exchange of tomatoes in Florida.

The agreement to suspend tomatoes, which was signed for the first time in 1996, was set up on duties caused by the decision of the American Trade Court, which found that Mexican exporters were selling their products at artificially low prices.

Under the agreement, the United States agreed to suspend customs duties, provided that the Mexican producers did not sell their products below the agreed “reference prices”.

The two sides renewed the deal on four occasions, recently in 2019.

In a joint statement, the economy and agriculture in Mexico condemned this step as “unfair” and “against the interests of Mexican producers, but also in the United States industry.”

The ministries said: “The gains achieved by fresh Mexican tomatoes in the American market are due to the quality of the product and not for any unfair practices,” adding that the customs tariff “will only harm US consumer governor, as it will be impossible to replace Mexican tomatoes.”

Democratic politicians also criticized the customs tariff, and warned of high prices and job losses.

“Donald Trump’s reckless trade war raises prices, threatening our economic growth and murder of jobs,” Arizona Katie Hobbes, a democracy, said in a statement.

“With his last unimaginable decision to leave the tomato suspension agreement, he threatens to kill more than 50,000 jobs between Arizona and Tixas and forced Arzon to pay more in the grocery store, all in favor of Florida farmers. Arizona and families will pay the price of this tax height, which represents the last step in the reckless trade war.”