Published: Thu, June 07, 2018
Finance | By Cynthia Curry

Mexico to impose tariffs on $3B in USA products

Mexico to impose tariffs on $3B in USA products

But critics of Mr Mnuchin's approach say the new CFIUS legislation would be a weak substitute for the investment curbs the White House is considering in its trade dispute with China.

CNN has obtained details from a call between President Trump and Canadian Prime Minister Justin Trudeau on the recent tariff announcements, and apparently things got a tad bit heated.

The list includes whisky, cheese, steel, bourbon, and pork.

The tariffs range between 15% and 25%, and could raise the price of U.S. goods by that amount, cutting deeply into United States exports to its neighbor.

Analysts say the tariffs are created to hit US Republican strongholds ahead of mid-term elections in November.

US stocks, apart from those of steel and aluminum producers, have fallen sharply in response to Trump's recent tariff announcements and other actions against trading partners. Essentially, the report indicates, for every steel and aluminum job gained there will be 16 jobs lost in other industries throughout the rest of the nation's economy.

While Mexico exports more goods and services to the United States than it buys, it is also the second largest market for USA exports, buying $277 billion worth of U.S. goods and services a year ago, according to the Commerce Department. Canada dominates, supplying more than a quarter of all USA steel, aluminum and iron imports in 2016.

French President Emmanuel Macron described the USA tariffs as "illegal" and a "mistake".

The European Union launched a challenged to the tariffs with the World Trade Organisation (WTO). But growers will look for other export markets to make up for lost sales to Mexico.

"I'm always the optimist, I believe it can be worked out", Kudlow said.

New Mac App Store revealed
Apple also previewed macOS "Mojave" , the latest version of the world's most advanced desktop operating system, with new features. This facility is enabled through Quick Look that provides a fast , full-size preview of a file only with a click on the spacebar.

On the Canadian end, three of the top five states that stand to lose the most from Canada's tariffs are the key swing states of Pennsylvania, Ohio, and MI.

This isn't the first time Mexico employed a similar trade tactic to try to extract concessions from the US.

The renewed trade dispute between United States and Mexico comes amid fraught attempts to renegotiate the trillion-dollar North American Free Trade Agreement (Nafta). Larry Kudlow, economic advisor to Trump, said Tuesday the administration wants to replace the agreement entirely, with separate trade deals with both the northern and southern neighbors.

Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto renewed their commitment to NAFTA last week after the tariffs were imposed. The US Commerce Department says that constitutes a threat to US national security.

The new tariffs, announced last week, sparked disbelief from across the political spectrum in Canada. He also said that the products to which the new tariffs apply were chosen to limit the impact on inflation.

Canada was not a country in 1812. And it will put tariffs on some larger ticket items such as sailboats, washing machines, dish washers and lawn mowers.

A second set is aimed at adding a 10 per cent tariff on select American-made products including orange juice, peanut butter, lawn mowers and chocolate. U.S. denim, bourbon, motorcycles, peanut butter, motor boats and cigarettes will cost more in Europe as a result.

JP Morgan's top strategist Marko Kolanovic said President Trump's tough talk on trade has wiped $US1.25 trillion off the USA stocks since March.

Mexico has been a valuable trade partner, as it has become a significant source of US imported crude oil.

Correction: A previous version of this story incorrectly stated the value of all U.S. exports to Mexico.

Like this: