Mexico Details Its List of Retaliatory Tariffs Against U.S., Adds Bourbon

Jeannie Matthews
June 6, 2018

China has threatened to retaliate by placing its own tariffs on roughly $50 billion of American products, and Mr. Trump responded by threatening tariffs on an additional $100 billion of Chinese goods. Some further tariffs will come into force on July 5.

The 25 percent tariff on imports of steel and 10 percent on imports of aluminum went into effect on June 1, after a short exemption period for Canada, Mexico, and the European Union.

"This is devastating to my family and pork-producing families across the United States", said Heimerl, a pork producer from Johnstown, Ohio.

The US last week said it's levying the new metals duties on imports from the nations and the European Union on national security grounds, ending their temporary exemptions. Bourbon-producing Kentucky and cheese-producing Wisconsin are others.

Canada sent 84 percent of its steel exports, worth C$9 billion ($6.97 billion), south a year ago, according to Statistics Canada.

American pork producers, for whom Mexico is the largest export market, were dismayed by the move. Cranberries made the list, as did USA apples, with a 20% duty. "That's why this issue is so important", Freedom Partners executive vice-president James Davis said in a statement.

Mexican Economy Minister Ildefonso Guajardo said his country would now "surely" look to Europe for pork products, used in many traditional dishes in Mexico. He also said that the products to which the new tariffs apply were chosen to limit the impact on inflation.

The tariff increases are created to hit areas that are politically favourable to Trump, such as pork production, Mexican experts said.

Separately, Mexico took steps on Tuesday to make it more attractive for other countries to send it pork by opening a tariff-free quota for some pork imports.

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However, one Mexican producer disagrees with Hernández's assessment that pork prices won't rise.

"In no way is this [tariff list] publication revenge".

The tariff decision elicited outcries from allies overseas and domestic business groups - but arguably none more influential among conservatives than the Koch network.

If the United States removes its tariffs, Mexico will do the same, Baker added.

At a White House trade meeting on Tuesday, Treasury Secretary Steven Mnuchin urged President Donald Trump to exempt Canada from steep steel and aluminum tariffs, two senior administration officials and two sources close to the White House tell ABC News.

The tariff dispute has further complicated already contentious and prolonged NAFTA negotiations and created further uncertainty about the future of the trilateral agreement. Trump directed Mnuchin to draw up the restrictions as part of an investigation into China's alleged theft of intellectual property that also allows the imposition of tariffs.

Trump suggested last week that NAFTA could be replaced with two separate trade accords, one with Mexico and another with Canada.

The U.S., Mexico and Canada are locked in a contentious renegotiation of the North American Trade Agreement.

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