Mexico Imposes Import Tariffs On US Pork, Agricultural Goods

Justin Trudeau

Justin Trudeau

Mexico said yesterday that it will challenge the metal tariffs at the World Trade Organization, following the leads of Canada and the European Union.

The White House declined to comment when asked by CNN about the President's remark in reference to the War of 1812. "It's a measure that Mexico has a right to in accordance with the trade agreement to compensate for the damage caused by the [United States'] tariffs, which they set under the alleged argument of national security", he said.

"We need trade and one of the things we're concerned about is long-term implications that these trade issues will have on our partnerships with Mexico and Canada and other markets", Iowa Secretary of Agriculture Mike Naig, a Republican, was quoted as saying by Reuters news agency.

The statements follow Trump's economic adviser Larry Kudlow's interview with Fox News, during which he revealed that the USA president was looking into signing separate bilateral agreements with Canada and Mexico instead of preserving NAFTA.

CNN reported that, during a call with Trudeau, Trump referenced the burning of the White House during the War of 1812 after Trudeau asked about new USA tariffs on Canadian steel and aluminum.

Washington has demanded that Beijing take steps to open its markets further to US goods.

Officials in Brussels, who are leading the member states' response, said nations had given broad support for a plan to set duties on €2.8bn (£2.5bn) of U.S. exports. That falls short of the US$200 billion over two years that the Trump administration has demanded the Chinese government buy to address a yawning trade imbalance.

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"We know certainly that there will be frank and sometimes hard discussions around the G7 table, particularly with the USA president on tariffs", Trudeau told reporters.

The Trump administration placed a 25 percent tariff on steel and 10 percent tariff on aluminum with the aim of propping up us metals manufacturers.

Canada has also announced plans to retaliate with tariffs of up to 25% on almost $13 billion of United States products, set to take effect on July 1.

Mnuchin's support of legislation restricting Chinese investments that imperil the United States' national security is among his highest priorities, a Treasury spokesman said on Tuesday. European allies have urged Trump to reconsider.

German Chancellor Angela Merkel said she expects "difficult discussions" at the summit in Quebec.

The National Economic Council Director said Trump is "the strongest trade reformer of the past 20 years", and is striving not only to protect American interests but to open up avenues of growth for American business and workers. "This is devastating to my family and pork producing families across the United States".

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