Business

Mexico Strikes Back: Retaliatory Tariffs Target Key US Imports Amid Trade Tensions

Mexico Strikes Back: Retaliatory Tariffs Target Key US Imports Amid Trade Tensions
tariffs
trade
economy
Key Points
  • 5-7% tariffs target US steel, pork, and dairy products
  • Countermeasures follow US aluminum import tax increases
  • 2023 bilateral trade reached $863B under USMCA framework
  • Avocado exports from Michoacán face 18% transport cost hike

The Mexican government has declared a 7% tariff on premium US beef imports, directly affecting Texas-based exporters who shipped $2.4B in cattle products last year. This strategic move comes three weeks after the US imposed 15% tariffs on Mexican aluminum, which officials claim violates Chapter 23 of the USMCA agreement...

Automotive manufacturers face immediate challenges, with Ford suspending production of its F-650 trucks at Hermosillo plant. Industry analysts predict a 12-14% price increase for commercial vehicles by Q4 2024. Meanwhile, Mexican agricultural cooperatives report surging demand for domestic cheese alternatives, with Oaxaca-style queso sales up 41% since June...

Regional case study: Michoacán's avocado growers now pay $1,850 per refrigerated container for US exports - 22% higher than 2023 averages. This impacts pricing for major guacamole producers like Wholly Guacamole, which sources 68% of its Hass avocados from the volcanic highlands region...