In retaliation to Trump’s tariffs on steel and aluminum imports, Mexico imposed a series of tariffs against US exports to its market valued at $3 billion. They’ll raise the price of products including pork, apples, potatoes, bourbon, and several types of cheeses further straining relationships between the two countries as they struggle to rewrite the North American Free Trade Agreement.
NAFTA, the three-nation trade pact, prevents the US, Mexico, and Canada from imposing tariffs on imports from one another. However, President Trump has been a strict critic of NAFTA, and the three countries are holding negotiations for possible changes on the free trade deal.
Conformable to Bloomberg, Mexico will impose tariffs of 25 percent on certain cheese products, steel and Tennessee whiskey while imposing taxes of 20 percent on park, apples, and potatoes.
The tariffs imposed will affect a little over 1 percent of US exports to Mexico. But they’ll have a significant impact on targeted US industries.
The rapid exchange of tariffs and trade threats leaves US farmers and agricultural groups fearing tougher overseas sells, with duties adding to the cost of US goods in markets that imported $70 billion worth of US farm products the previous year.
Furthermore, Canada has announced plans to retaliate with tariffs up to 25 percent on nearly $13 billion of US products effective on July 1, according to CNN Money. Canada, which is a country that buys more US goods than it exports, will put tariffs on a wide variety of consumer products, ranging from pens and detergent to toilet paper and playing cards.
The EU has also announced retaliatory tariffs of 25 percent on approximately 200 American products set to take effect in July.
The US Chamber of Commerce predicts that 2.6 million jobs will be threatened by the Trump administration’s stance on imports.