US Commerce Department expected to issue preliminary strawberry tariff finding by Aug 18
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The US Commerce Department is expected to release a preliminary antidumping finding on Mexican strawberries by August 18, a step that could lead to tariffs on more than $1 billion in annual imports. Mexican shipments accounted for 98% of US strawberry imports last year, and Florida growers say lower-priced winter berries have taken market share from domestic producers.
Key Facts
- Strawberry Growers for Fair Trade, a coalition of Florida strawberry producers, filed the antidumping case against Mexican winter strawberries.
- US tomato prices were 12.8% higher in July than a year earlier, after a roughly 17% antidumping duty on most Mexican tomatoes took effect last July.
- A US Department of Commerce report in April found adverse weather in Mexico and freezing temperatures in Florida also contributed to the tomato price increase.
- In a separate pasta case, Commerce initially proposed antidumping duties as high as 92% before cutting them below 10% after reviewing additional information.
The Strawberry Antidumping Case
The US Commerce Department is expected to release its preliminary finding in the strawberry antidumping case by August 18, which could call for higher tariffs on Mexican winter strawberries. The case was brought by Strawberry Growers for Fair Trade, a coalition of Florida strawberry producers whose berries are harvested during the winter months. Mexican imports have grown faster than US winter strawberry demand and taken market share from domestic growers by selling at lower prices, according to Daniel Pickard, lead counsel for the coalition. If the case succeeds, Pickard expects the tariffs to have a "relatively modest" impact on consumer prices while helping US farmers compete. A final determination will likely take several months, and the tariff rate could still change after the preliminary finding.
US Reliance on Mexican Imports
Mexico supplied 98% of US strawberry imports last year, with shipments worth more than $1 billion, according to data from the US Department of Agriculture. The US becomes particularly reliant on Mexican strawberries during winter months, when domestic production slows. Florida strawberry producers typically harvest berries during the winter months, competing directly with Mexican imports. The Trump administration is investigating whether Mexican growers are selling winter-harvested strawberries in the United States at unfairly low prices. A tariff determination could mark a break from decades of largely duty-free trade for Mexican strawberries under US free trade agreements.
Tomato Duty Precedent
Tomato prices were 12.8% higher in July than a year earlier, according to the Consumer Price Index. The increase followed a roughly 17% antidumping duty on most Mexican tomatoes that took effect last July. A US Department of Commerce report in April found that adverse weather in Mexican tomato-growing regions and freezing temperatures in parts of Florida during the first two months of this year also played a role. In an Italian pasta case last year, Commerce initially proposed additional antidumping duties as high as 92% before lowering the rates to below 10% after reviewing additional information from pasta makers. Lower final pasta rates helped avert dramatically higher prices or reduced access to some Italian pasta brands for US consumers.
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US Commerce Department expected to issue preliminary strawberry tariff finding by Aug 18
