Economy

Mexico Announces 20 Percent Retaliatory Tariff on American Pork

JM Ashby
Written by JM Ashby

The Mexican government already announced that it would retaliate for Trump's tariffs on steel and aluminum by imposing their own tariffs on American pork, but now we have more specific numbers.

Industry officials who've been briefed by the Mexican government shared the details with Reuters yesterday evening.

“It’s a 20 percent (tariff) on legs and shoulders, fresh and frozen ... with bones and without bones,” said Heriberto Hernandez, president of Mexico’s leading pork producers association OPORPA, following a briefing earlier on Monday with Economy Minister Ildefonso Guajardo and his team.

Hernandez said he supported the Mexican government’s decision and does not expect it to cause pork prices in Mexico to rise because “there are many alternatives” to U.S. suppliers. [...]

Last year, Mexico imported nearly 650,000 tonnes of pork legs and shoulders worth an estimated $1.07 billion, according to government data.

Mexico is the largest export market for American pork and pork legs and shoulders account for at least 90 percent of exports to Mexico. The value of that market is about to drop by at least 20 percent if it's not replaced entirely by the pork industry in other countries.

This isn't just a matter of American agriculture becoming too expensive for people in other countries to buy. It's possible American agriculture will permanently lose market share as foreign producers step up to fill the void created by Trump's trade war.

Trump is picking fights with everyone else, but they aren't fighting each other. Other countries are signing new trade deals without the United States. Trump's folly is their gain.

Mexico's tariffs on pork and other products will go into effect tomorrow.

  • muselet

    “Trade wars are good, and easy to win.”

    Only for countries led by intelligent people who don’t get into trade wars and make trade deals with countries led by other intelligent people.

    The United States does not, alas, currently qualify.

    –alopecia

  • Aynwrong

    To hell with schadenfreude, these idiots are harming us all and Paul Ryan and Mitch McConnell are just sitting back and allowing it in hopes of another round of tax cuts (bribes) and deregulation (more bribes).

    These people are not patriots and there voters are imbeciles.

  • katanahamon

    Ok, now, Congress..don’t do anything..just sit there and let a petulant toddler dictate crazy, stupid policies..let’s not have any of those checks and balances…

    • Username1016

      I find myself longing for a parliamentary system where we could just hold a vote of No Confidence and sideline him. Our own system seems sorely lacking.

      • ninjaf

        This is the first administration I have ever wished for something like this. We need some sort of “buyer’s remorse” option.

        Or liberals needs to show up to vote as reliably as conservatives do.

        • Scopedog

          I’d take the second point. So sick and tired of the “But, but both parties are the same!!” horseshit; if this Administration hasn’t shown the need to drive a stake through the heart of this BS idea, I don’t know what will.