Mexico on June 6,2018 announced countermeasures against U.S. tariffs on steel and aluminium, covering everything from agricultural products to steel products, with the Mexican peso lower by more than 1 percent.
According to documents released by the Mexican government, 20 taxes will be levied on U.S. imports of pig hind leg meat and pig scapula, 20% on American cheese and bourbon whiskey, 20 on apples and potatoes, and 20 on steel products.
The Mexican government's decision is in response to U.S. tariffs on steel and aluminium. On May 31st, the United States announced an additional 25% tariff on steel and 10% on aluminum on its major trading partners, Canada, Mexico and the European Union. It will take effect from June 1 st, EST.
The European Union's trade executive, Malmstr ö m, said on Tuesday that the EU could take preliminary steps as early as July to protect the steel and aluminium industry. The European Union also said it would impose taxes on U.S. Harley motorcycles and bourbon whiskey, measures that point directly to the main Republican Congressional constituency.
Canada had previously announced that it would impose tariffs of 25 percent or 10 percent on products such as steel and aluminium, which are of U.S. origin, and would affect imports of 16.6 billion Canadian dollars ($12.8 billion), equivalent to the size of Canadian exports affected by U.S. tariffs. Canada will begin a 15-day public consultation on May 31, with post-tariff measures coming into effect on July 1 until the United States removes trade restrictions on Canada.
The Mexican peso was under pressure, falling nearly 1.6 cents to 20.4 pesos per dollar, its lowest level since February 2017. The slow pace of negotiations on a trade war with the United States and the North American Free Trade Agreement (NAFTA) has raised concerns about Mexico's economic prospects.