Mexico strikes back at United States with tariffs on pork, steel, whiskey

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Mexico strikes back at United States with tariffs on pork, steel, whiskey

The move follows a USA decision to impose tariffs on imports of Mexican steel and aluminum purchases, which took effect on Friday.

Mexico's retaliatory list, published in the government's official gazette, included a 20 percent tariff on USA pork legs and shoulders, apples and potatoes and 20 to 25 percent duties on types of cheeses and bourbon.

Mexico imports so much US pork - almost one-third of what's consumed - that the government says it will waive tariffs on up to 350,000 tons of pork imported from other nations to avoid destabilizing the market.

Powerful US billionaire brothers Charles and David Koch are funding a multi-million dollar campaign against President Donald Trump's trade tariffs.

When he first proposed the tariffs in March, Trump stated he would consider lifting them if a new deal was met on the North American Free Trade Agreement (NAFTA).

Heriberto Hernández, president of the Mexican Association of Pork Producers (OPORPA), said that he supports the government's decision and didn't expert Mexican pork prices to go up because "there are a lot of alternatives" to US suppliers.

Mexico's trade negotiators designed the list, in part, to include products exported by top Republican leaders' states, including in where Vice President Mike Pence was formerly governor, according to a trade source familiar with the matter.

According to the United States Trade Representative's office, the USA had a $17.5 billion dollar goods deficit with Canada in 2017, but an overall surplus of $8.4 billion with Canada in 2017, with services, are included.

Still, Lovely said it's possible that the United States can craft a separate agreement with Canada. If China does ramp up purchases of energy and agricultural goods, they say, it would simply displace those purchases from other nations, making little lasting impact on the overall trade deficit or the American economy.

Americans for Prosperity president Tim Phillips said the tariffs would "hamstring our full economic potential".

"Mexico can adjust the composition of the list of products originating from the United States", the ministry warned.

Counting only goods and excluding services, as US President Donald Trump frequently does, the US trade deficit rose to a record $375 billion previous year.

Finance Minister Bill Morneau, who hosted his own G7 counterparts last week in Whistler, B.C., said afterwards that he expects the leaders to keep pressure on the reconsider the tariffs.

The industry officials said the new pork tariff schedule will be published on Tuesday in Mexico's official gazette and will go into effect on Wednesday.

Mexico is the biggest customer for Washington apples.

Canada, Trudeau said, would not be as keen.

David Koch has been a vocal booster of free-market initiatives such as eliminating trade barriers between countries. "But we must understand that a Norway model is specifically created to serve the interests of Norway and would not work for the United Kingdom".

Mexican Economy Minister Ildefonso Guajardo said his country would now "surely" look to Europe for pork products, used in many traditional dishes in Mexico. The United States also imposed metals tariffs on the European Union, Japan and other countries as part of an effort to stop the flow of imported metals.

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