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5 Jun, 2018 13:42

Mexico slaps levies on US pork in response to Trump's steel & aluminum tariffs

Mexico slaps levies on US pork in response to Trump's steel & aluminum tariffs

US pork will be levied with a 20 percent tariff by Mexico in retaliation to US trade barriers on steel and aluminum, Reuters reports quoting two industry officials.

Mexico has warned the US about upcoming tariffs on pork chops. The country buys more than $1 billion worth of pork legs and shoulders, and 90 percent of them come from the US.

“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 meeting on Monday with Economy Minister Ildefonso Guajardo.

According to Hernandez, tariffs will not result in a price spike in Mexico since the country has other markets to buy from. Industry officials have told Reuters that Mexico could buy pork from Canada tax-free because of NAFTA or the European Union.

Mexico is a huge importer of pork legs and shoulders since they are used in the country’s most popular dishes, including tacos and carnitas. In the US, customers prefer ribs and bacon.

President Trump has imposed steep tariffs on steel and aluminum from three of America's biggest trading partners — Canada, Mexico and the EU. The trade tariffs are 25 percent on imported steel and 10 percent on imported aluminum. Trump imposed the penalties under a 1962 law that allows a president to increase or reduce tariffs on goods they regard as critical to national security.

For more stories on economy & finance visit RT's business section