Mexico hits USA pork, cheese, grapes in reply to Trump tariffs

Minnie Murray
June 7, 2018

Mexico filed the complaint after Trump decided not to extend a temporary exemption granted in March to the EU, Canada and Mexico.

Mexico's actions are within the rules of the WTO and NAFTA, Mexican Economy Minister Ildefonso Guajardo told reporters on Tuesday.

Mexico said on Monday that it will complain to the WTO over the US measures, saying that it violates the organization's agreement on safeguards by not having been adopted in accordance with the procedures provided, in addition to violating the General Agreement on Tariffs and Trade.

Galimberti says American steel continues to flow into Canada tariff-free while Canadian steel now faces tariffs south of the border.

The Mexican currency slid for a fourth day on Tuesday, dropping 1.4 percent to 20.3488 in morning trading in NY, the sharpest retreat among major currencies.

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

Other US allies have also reacted with fury and retaliation, with fears building of a global trade war.

Chinese negotiators there, led by Liu He, President Xi Jinping's trade representative, offered to buy more soybeans, corn, natural gas, crude oil and coal, among other agricultural and energy products from the the first year, the Journal said.

Mexican President Enrique Pena Nieto and his Canadian counterpart, Justin Trudeau, spoke as soon as Washington announced the new duties. On Friday, he imposed the 25 per cent tariffs on steel imports and 10 per cent on aluminum imports from Mexico.

Mexico has received backing in the dispute from its domestic business sector. Although Washington wants its deficit with China to average $15 billion monthly, it will likely also hover around last month's $26 billion.

Mexican Finance Minister Jose Antonio Gonzalez Anaya said the United States tariffs - along with Trump's tweets against Mexico - further raise tensions over the NAFTA review.

The US is Mexico's largest trading partner, receiving about 80 per cent of the country's exports.

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