Despite the United States entering into a new trade agreement with Canada and Mexico, the White House is still targeting its neighbors with tariffs.
According to an announcement from the Commerce Department, the U.S. government will slap taxes on imports of Mexican tomatoes. It is unclear when the levy would be imposed, but it will have a 17.5 percent tariff.
The reason? To protect Florida’s tomato farmers.
In the last two decades, Mexican exports of tomatoes to the U.S. have doubled, valuing at $2 billion in 2018. Today, Mexico supplies roughly half of all tomatoes consumed in the U.S. However, the Mexican government noted that its growers suffer more than $350 million a year in losses because of U.S. anti-dumping duties.
But here is an interesting tidbit courtesy of Robert Wenzel over at the Economic Policy Journal:
“Not surprisingly, it is the Florida Tomato Exchange, which represents tomato growers in Florida and other U.S. states, that requested the end of the suspension agreement last November.”
Protectionism at its finest.
It’s 1929 all over again!
Perhaps the Trump administration will be reminded of the USMC. If so, perhaps this tariff will be a case of here today, gone tomato.
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