E.U. & Mexico Announce Retaliatory Tariffs on U.S. Imports

What’s the story?

• The European Union and Mexico are striking back against the Trump administration’s decision to impose heavy tariffs on steel and aluminum.
• Mexico is imposing tariffs on $3 billion worth of U.S. exports, which are expected to hike the price of American pork, potatoes, bourbon, and certain kinds of cheese.
• Meanwhile, the European Union on Wednesday announced that starting in July, it will introduce “rebalancing” tariffs on $3.4 billion worth of U.S. steel, bourbon, peanut butter, cranberries, orange juice, and other products.

Mexico

• The Mexican government said in a statement:

"It is necessary and urgent to impose measures equivalent to the measures implemented by" the U.S.

• While the tariffs imposed by Mexico will affect just over 1 percent of U.S. exports to the country, CNN Money explained that “they'll have a significant impact on the targeted US industries.”
• "A 20% tariff eliminates our ability to compete effectively in Mexico," Jim Heimerl, president of the National Pork Producers Council, told CNN Money. "This is devastating to my family and pork producing families across the United States."

E.U.

• “The new duties start applying in July,” European Commission Vice-President Maros Sefcovic told reporters. “It is a measured and proportionate response to the unilateral and illegal decision taken by the United States.”
• The E.U. has also started a World Trade Organization dispute settlement over the U.S. tariffs. If the WTO rules in favor of the E.U. – or if the case is still being litigated in three years – the E.U. plans to impose additional tariffs on $4.2 billion worth of U.S. products.

What do you think?

Do you support the tariffs? Or do you agree with Sen. Orrin Hatch (R-UT) that they’re “a tax hike the American people don't need and can't afford”? Hit Take Action and tell your reps, then share your thoughts below.

—Josh Herman

Related Reading                     

• Has the Trade War Begun? 
• What Can Congress Do About the Tariffs?
• U.S. Slaps Metal Tariffs on Mexico, Canada, and E.U.

(Photo Credit: enviromantic / iStock)