Mexico To Slap Tariffs On US Goods Worth $3 Billion: Minister

The tariffs that Mexico is planning to impose on American products would be worth $3 billion and would include goods from a number of sectors, said the country’s Economy Minister Ildefonso Guajardo on Tuesday.

“The value of the impact will be around 3 billion U.S. dollars, the list built by Mexico clearly goes to that level,” Guajardo told a conference of the Organisation for Economic Co-operation and Development (OECD).

Tariffs ranging between 15 per cent and 25 percent on goods like steel and agricultural produce being imported into Mexico from the United States was announced to be imposed by the Mexican government on Tuesday.

The list of tariffs includes a 20 per cent import tariff on pork and on other products such as cranberries, apples and potatoes. While imported steel and aluminum into Mexico from the U.S. would attract tariffs between 15 and 25 per cent, Mexico has announced tariffs in the range of 20 and 25 per cent on cheese and whisky imported from the US.

According to Guajardo a number of the products facing Mexican tariffs like pork and cheese have bene placed on a sliding scale so that the producers are allowed time to appropriately adjust their sources of income and then slowly take recourse in alternative measures.

“Some of these issues will also have an impact on our allies. There are very important people in the United States who have pushed for a good NAFTA, including many friends in the agricultural sector,” he added.

“We wanted to send a message that the impact will be contained…to give them time to express themselves to their own government…we hope to return to a situation of normality and find an agreement where everyone returns to the original position,” he detailed.

It was just last week that the imposition of U.S. tariffs of 25 percent on steel imports into the US and 10 percent on aluminum imports from the EU, Canada and Mexico was announced by U.S. Commerce Secretary Wilbur Ross. The tariffs are applicable from June 1 this year.

Both Mexico and Canada were given initial exemption from the tariffs by the Trump administration because both the countries were in negotiations with the US for the rearrangement of the NAFTA deal. But both the countries were slapped with the tariffs after talks between the parties reportedly failed to yield a favorable result for America.

In retaliation to the tariffs, Mexico had promised to impose tariffs of its own on America goods in addition to taking the matter up with the WTO for a resolution of the conflict.

as well as to lodge a petition to the WTO to resolve the conflict.

(Adapted from Xinhuanet.com)

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Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability

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