USA threatens and Sheinbaum responds with commerce

Less than 48 hours of new sanctions, US parliamentarians press for dialogue with Mexico and point to bilateral risks in unilateral decisions

Two US parliamentarians who held meetings with Mexico President Claudia Sheinbaum on Wednesday (30) highlighted significant opportunities to expand bilateral trade between countries, at a critical moment in the face of the threat of new US tariffs.

Republican Don Bacon of Nebraska and California’s Democrat Ro Khanna talked to Mexican mandate in Mexico City in a meeting that addressed strategic themes such as security, agriculture and immigration. Congressmen stressed the importance of strengthening bilateral ties before awaited telephone contact between Sheinbaum and US President Donald Trump, scheduled for Thursday, with the aim of avoiding a 30% rate on Mexican products.

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“If we do not reach an agreement, it only hurts the two countries,” said Bacon, noting that Nebraska exports important commodities to Mexico, such as beef, corn and soy. “We are buying what we need, and they are buying what they need, so it seems that it is an advantageous relationship for everyone.”

The visit of legislators occurs in a tense context in trade relations between the two countries. President Trump said last month that Mexico made enough efforts to combat fentanyl trafficking by criminal cartels. To date, the 25% rate imposed at the beginning of the year was only applied to products that do not enjoy exemption under the USMCA trade agreement. Unless an understanding is reached at the last minute, the new commercial rate comes into force on Friday, as announced by Trump in a letter released on social networks.

Congressmen also discussed with Sheinbaum solutions for ongoing commercial disputes, including the rate applied to Mexican tomatoes after complaints from US producers, and the ban on cattle imports due to the presence of the bicheira, a plague that worries the breeders of the region.

Bacon and Khanna still had audiences with Foreign Minister Juan Ramón de La Fuente, and Agriculture Minister Julio Berdegue, expanding the spectrum of conversations to topics of mutual interest.

Khanna emphasized the need to avoid measures that can negatively impact jobs in both countries. “We don’t want high rates that harm jobs in the United States or Mexico,” he said. “And we want to see a solution.”

Parliamentarians argued that a higher rate would not benefit their respective states, reinforcing that supporting Mexico’s economic development could offer employment alternatives that would remove potential recruits from criminal organizations. The approach reflects a view that associates economic development and regional security.

Bacon also highlighted advances in the safety of the US border as a factor that makes room for broader immigration legislation, including protections for undocumented migrants who have been working in the United States for years.

“Very few are managing to pass and are being prevented. So I would say that, by definition, the border is safe at this time,” said Bacon, who has worked on the reintroduction of an immigration bill with support from both parties. “This gives the president some margin of maneuver to do something big.”

During the agenda in Mexico, congressmen also held meetings with high -ranking military authorities, identifying possibilities for cyber security cooperation. Bacon presides over the Specialized Subcommittee on Cybersecurity of the Chamber of Armed Services Committee, while Khanna, which also is part of the Commission, represents the district that houses the Silicon Valley, a US technological hub.

The visit illustrates the effort of the US Congress to seek diplomatic solutions before the entry into force of trade measures that could significantly impact the economies of both countries. With the deadline approaching, meetings on Mexican soil gain strategic relevance at a decisive time for bilateral relations.

Commercial dispute over tomatoes can cost out product at 10% in the USA

US consumers can see the price of fresh tomatoes rise up to 10% in the coming weeks, with the imminent end of a trade agreement with Mexico that regulates import prices.

The largest US tomato distributor, Naturesweet Ltd., has warned its clients about the necessary increase if the bilateral understanding exhales on July 14. In an interview on Tuesday, the company’s executive president, Rodolfo Spielmann, went straight to stating that there is no condition to absorb additional costs: “There is no scenario where I can absorb these tariffs. Margins are not high enough.”

The prospect of readjustment comes at a delicate time for the American vegetable market. Naturesweet has a dominant position in the industry, with its stars-such as popular uva tomatoes-present in major retailers such as Walmart Inc., Kroger Co. and Albertsons Cos.

The US Department of Commerce announced in April that it would end the longtime trade agreement with Mexico on tomato prices, automatically applying a 17% tariff to imported fruits. With less than a week for the deadline, experts consider a last -minute agreement unlikely, although several business groups are pressing on an extension that allows more time for negotiations.

The end of the agreement represents a significant impact on American companies that grow tomatoes on Mexican soil and export them to the US market, where they dominate practically half of the shelves. Data from the US Department of Agriculture show that about 72% of fresh tomatoes consumed in the country were imported by 2024, approximately 90% originating from Mexico.

The change in the commercial landscape was enthusiastically received by some local producers. US Secretary of Agriculture, Brooke Rollins, acknowledged that the end of the deal could temporarily increase prices, but defended the measure as essential to ensure fair business practices. “It is possible that the price of tomato rises in the short term. In the long run, ensuring that our international partners are fair, follow the rules and fulfill their obligations is fundamental,” he said.

Tomato producers in Florida and other states for years pressured the government to break the deal with Mexico, claiming that neighboring imports were sold at unfairly low prices. The original understanding, signed in 1996 and periodically renegotiated, had suspended an investigation into dumping and established minimal prices for Mexican tomatoes, as well as providing additional inspections.

“It didn’t work,” said Robert Guenther, executive vice president of the Florida Tomato Scholarship, which represents several producers of the state and other regions. Over the past 30 years, he said, “What we have seen has been a consistent reduction in the market share of tomatoes in the US.” When the agreement was initially signed, US producers accounted for about 80% of the domestic market – a percentage that fell to approximately 30%.

However, agricultural economists indicate that Mexico has gained space in the market due to natural and economic factors. The favorable climate and the infrastructure of greenhouse in the neighboring country were ideal for growing increasingly popular varieties such as cherry, grape and heirloom tomatoes. The cheapest labor has also contributed to maintaining competitive prices.

“It is not due to a joint effort of Mexican producers to conquer the market share and expel Florida. They are simply providing better products to the market,” Matt Mandel, vice president of Sunfed Produce, Arizona, which imports 95% of its Mexico production. Mandel also confirmed that his company will need to pass on the additional costs to consumers if the agreement has.

“It will increase prices, final point, end point,” he said. “We are working with very small, very small margins and there is no way to absorb 17%.”

Despite expectations of increase, Guenther believes the impact will be moderate. According to him, American producers in states such as Florida, Arizona and California are able to expand their production and compensate for part of the reduction in imports.

However, experts warn that the end of Mexican imports can have broader impacts on the local economy. Andrew Muhammad, professor of agricultural policy at the Institute of Agriculture at the University of Tennessee, points out that the reduction of bilateral trade will also mean loss of jobs related to the import chain.

“In addition to the loss of imports, there will be loss of economic activity. Import -associated services also pay Americans,” said Muhammad. An analysis of Texas A&M University in April estimates that the import and marketing of fresh Mexican tomatoes generate about 47,000 full -time and full -time jobs in the United States.

The political division surrounding the issue illustrates the different regional realities. Elected authorities from states such as Arizona and Texas, including Texas governor, Greg Abbott, have asked the federal government to maintain the agreement in force, recognizing the economic benefits for their regions. Florida legislators have been applauding efforts to end their understanding, defending the protection of local production.

With the deadline approaching, the debate gains contours that go beyond bilateral trade, playing agricultural policy, regional employment and consumer access to basic products in times of persistent inflation.

With information from Bloomberg*