Episode Details
Back to Episodes
Tariff Turmoil: Commerce Secretary Lutnick Shakes Up Mexico Tomato Trade
Published 7 months, 1 week ago
Description
U.S. Secretary of Commerce Howard Lutnick has been at the center of major trade headlines in the last few days. On July 14, Lutnick led the Commerce Department’s decision to terminate the long-standing 2019 Suspension Agreement on Fresh Tomatoes from Mexico. This move ended nearly three decades of negotiated tariff relief and introduced a new seventeen point zero nine percent tariff on imported Mexican tomatoes. Lutnick defended the decision by stating that U.S. farmers have been harmed by unfair trade practices and that the policy is consistent with the current administration’s broader trade strategy with Mexico. The Commerce Department explained that this policy is intended to give relief to American producers affected by underpriced imports and unfair competition.
The new tariff goes into effect immediately and is expected to significantly raise prices on tomatoes throughout the United States as most tomatoes consumed here come from Mexico. Some estimates indicate average price hikes of between ten and fifty percent, with the possibility of even greater increases depending on market responses. Critics, including Arizona’s Senator Ruben Gallego and local industry leaders, warn that this will negatively impact small businesses, restaurants, and border communities that rely on international tomato trade. These critics say that terminating the agreement could slow hiring and threaten jobs, especially in Arizona where the supply chain is deeply linked to Mexican imports.
In related developments, Lutnick is scheduled to meet with members of the House Ways and Means Committee this week alongside the U.S. Trade Representative, with tariffs being the main focus of those conversations. President Trump recently announced new tariff hikes on several major trading partners, including Japan, South Korea, Canada, the European Union, and Mexico, and has also threatened a one hundred percent tariff on Russia if a Ukraine peace deal is not reached soon. When asked about the impact of these escalating measures on financial markets, Lutnick argued that investors have adapted to the volatile tariff environment and have retained confidence in the administration’s negotiating approach.
On other international fronts, Lutnick clarified in a live CNBC interview that there will be no new tariffs placed on U.S. goods being exported to Indonesia, addressing market concerns about expanding U.S. trade disputes.
Thank you for tuning in, and do not forget to subscribe. This has been a quiet please production, for more check out quiet please dot ai.
For more http://www.quietplease.ai
Get the best deals https://amzn.to/3ODvOta
This content was created in partnership and with the help of Artificial Intelligence AI
The new tariff goes into effect immediately and is expected to significantly raise prices on tomatoes throughout the United States as most tomatoes consumed here come from Mexico. Some estimates indicate average price hikes of between ten and fifty percent, with the possibility of even greater increases depending on market responses. Critics, including Arizona’s Senator Ruben Gallego and local industry leaders, warn that this will negatively impact small businesses, restaurants, and border communities that rely on international tomato trade. These critics say that terminating the agreement could slow hiring and threaten jobs, especially in Arizona where the supply chain is deeply linked to Mexican imports.
In related developments, Lutnick is scheduled to meet with members of the House Ways and Means Committee this week alongside the U.S. Trade Representative, with tariffs being the main focus of those conversations. President Trump recently announced new tariff hikes on several major trading partners, including Japan, South Korea, Canada, the European Union, and Mexico, and has also threatened a one hundred percent tariff on Russia if a Ukraine peace deal is not reached soon. When asked about the impact of these escalating measures on financial markets, Lutnick argued that investors have adapted to the volatile tariff environment and have retained confidence in the administration’s negotiating approach.
On other international fronts, Lutnick clarified in a live CNBC interview that there will be no new tariffs placed on U.S. goods being exported to Indonesia, addressing market concerns about expanding U.S. trade disputes.
Thank you for tuning in, and do not forget to subscribe. This has been a quiet please production, for more check out quiet please dot ai.
For more http://www.quietplease.ai
Get the best deals https://amzn.to/3ODvOta
This content was created in partnership and with the help of Artificial Intelligence AI