Washington, Jul 15 (AP) The US government on Monday said it is placing a 17 per cent duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff.

Proponents said the import tax will help rebuild the shrinking US tomato industry and ensure that produce eaten in the US is also grown there. Mexico currently supplies around 70 per cent of US tomato market, up from 30 per cent two decades ago, according to the Florida Tomato Exchange.

But opponents, including US companies that grow tomatoes in Mexico, said the tariff will make fresh tomatoes more expensive for US buyers.

The Commerce Department said in late April that it was withdrawing from a deal it first reached with Mexico in 2019 to settle allegations the country was exporting tomatoes to the US at artificially low prices, a practice known as dumping.

As part of the deal, Mexico had to sell its tomatoes at a minimum price and abide by other rules. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties.

In announcing its withdrawal from the Tomato Suspension Agreement, the Commerce Department said in late April that it had been "flooded with comments" from US tomato growers who wanted better protection from Mexican imports.

But others, including the US Chamber of Commerce and the National Restaurant Association, had called on the Commerce Department to reach an agreement with Mexico.

In a letter sent last week to Commerce Secretary Howard Lutnick, the Chamber of Commerce and 30 other business groups said U.S. companies employ 50,000 workers and generate USD 8.3 billion in economic benefits moving tomatoes from Mexico into communities across the country.

"We are concerned that withdrawing from the agreement – at a time when the business community is already navigating significant trade uncertainty – could lead to retaliatory actions by our trading partners against other commodities and crops that could create further hardship for US businesses and consumers," the letter said. (AP) DIV DIV

Import duty on fresh tomatoes imposed after withdrawal from suspension agreement, raising concerns about costs and trade retaliation. The United States imposed a 17% duty on most fresh Mexican tomatoes after withdrawing from the Tomato Suspension Agreement. The 2019 agreement had imposed minimum prices and other conditions to address alleged dumping and had been extended by negotiated reviews that avoided duties. The Commerce Department ended the pact after receiving substantial comments from domestic growers seeking greater protection. Proponents say the duty protects the domestic tomato industry; opponents warn of higher consumer prices, supply chain disruption, and potential retaliatory trade measures.