Mexico began charging a 20 per cent tariff on United States pork and bourbon this week, part of its retaliation for the U.S. tariffs on steel and aluminum.
“It’s definitely not good news for our producers,” Maria Zieba, deputy director of international affairs for the National (U.S.) Pork Producers Council, said.
The announcement came as a surprise, mainly because pork is such a staple to Mexican consumers, the council said.
Mexico is the largest buyer of U.S. pork exports followed by China which has also threatened to impose a 25 per cent tariff on U.S. pork if the steel and aluminum tariffs are not scrapped.
Trade talks between the U.S. and China ended in a stalemate this week.
U.S. President Donald Trump says he wants to stop negotiating for a North American Free Trade Agreement and to make separate deals with Mexico and Canada.
Prime Minister Justin Trudeau rejected that idea.
There is a meeting of seven leading nations (the G7) going on in Quebec this week where Trump is likely to face outspoken criticism for his tariffs on steel and aluminum.
Back on the issue of pork, Zieba said “We’ve been able to export a lot of our shoulders and hams to Mexico, because they have such a demand for it…they don’t want to increase domestic prices on a key staple right before a presidential election.
“It was quite surprising to see us on the list,” she said.
