Mexico, Tomato
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The 17 percent duty that went into effect today jolts historic trade patterns and will likely raise prices by as much as 10 percent.
The Trump administration is adding a 17 percent tariff to a year-round grocery store staple, while funneling more business to domestic tomato growers, largely in Florida.
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On Monday, a new policy kicks in for a 21% price hike on tomato imports. It comes after the Trump administration ended a decades-old trade agreement with Mexico. The Trump administration said this move will drive down prices, but opponents say it will increase what most people pay at the grocery store.
The US government has imposed a 17% import duty on most fresh tomatoes from Mexico. This decision aims to protect the American tomato industry. Talks between US and Mexican officials failed to reach a new agreement.
On Monday, the U.S. pulled out of a three-decade-old tomato price agreement with Mexico, which makes way for a twenty-one percent tariff on the fruit, but the change actually benefits some locally-owned grocery stores.
Major tomato importer NatureSweet warns of price increases as the 2019 Tomato Suspension Agreement with Mexican exporters ends, bringing a nearly 21% tariff on imports.