On Monday, the Mexican government announced that it would impose tariffs on 90 U.S. industrial and agricultural products. The tariffs are in retaliation for the cancellation of a pilot program allowing 29 Mexican carriers and roughly 100 trucks to transport cargo throughout the U.S. It was cancelled in response to concerns raised involving truck safety, and, according to the Mexican government, in violation of NAFTA.
The retaliatory tariffs, according to the Mexican government, "affect about $2.4 billion in annual trade and 89 U.S. products, ranging from fruit and wine to washing machines." The affected products, including 36 agricultural products, will be taxed at anywhere between 10 and 45 percent of their value. Included in those 36 agricultural products are onions, strawberries, cherries, wine, almonds, potatoes and peanuts. The impact of the tariffs on the state of Texas alone is approximately $10.2 million, according to Texas Agriculture Commissioner Todd Staples. For more information on the topic, the Wall Street Journal article is here, the CNN article is here, and the FarmPolicy.com discussion is here.
