Mexico’s retaliatory tariffs target Republican strongholds
MEXICO CITY: Mexico put tariffs on American products ranging from steel to pork and bourbon yesterday, retaliating against import duties on metals imposed by President Donald Trump and taking aim at Republican strongholds before US congressional elections in November.
Mexico’s response further raises trade tensions between the two countries and adds a new complication to efforts to renegotiate the trilliondollar North American Free Trade Agreement between Canada, the United States and Mexico.
Trump economic adviser Larry Kudlow revived the possibility yesterday that the president would seek to replace Nafta with bilateral deals with Canada and Mexico, something both countries say they oppose.
Mexico’s retaliatory list included a 20% tariff on US pork legs and shoulders, apples and potatoes and 20% to 25% duties on types of cheeses and bourbon.
A net importer of US steel, Mexico is also putting 25% duties on a range of American steel products.
Mexico’s trade negotiators designed the list, in part, to include products exported by top Republican leaders’ states, including Indiana, where Vicepresident Mike Pence was formerly governor, according to a trade source. Bourbonproducing Kentucky is the home state of Senate Majority Leader Mitch McConnell, a Republican.
The new tariffs could also have political implications in some hotly contested races as the Republicans seek to maintain control of both chambers in Congress in November’s election, illustrating the potential perils of Trump’s efforts to set right what he sees as unfair trade balances with allies and rivals.