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Mexico to impose 20% retaliatory tariff on US pork imports

Mexico will impose a 20% retaliatory tariff on U.S. pork imports, two industry officials with direct knowledge of the plan told Reuters on June 4, less than a week after U.S. President Donald Trump decided to impose 25% tariffs on steel and aluminum imports from Mexico, the EU and Canada.

"It's a 20% (tariff) on legs and shoulders, fresh and frozen ... with bones and without bones," Reuters said, citing Heriberto Hernandez, president of Mexico's pork producers association OPORPA, at a June 4 briefing with Economy Minister Ildefonso Guajardo.

Industry officials said the new pork tariff schedule will be published on June 5 in Mexico's official gazette and will take effect June 6. The government has yet to provide details on the new tariff, Reuters said.

Pork legs and shoulders from U.S. suppliers represent about 90% of Mexico's estimated $1.07 billion annual imports of the cuts in 2017.

Hernandez does not expect the tariff to push up pork prices in Mexico because "there are many alternatives." Other industry officials said Canada could be another pork supplier because of NAFTA. The EU also recently concluded a revised trade pact with Mexico that allows tariff-free pork imports but includes restrictions such as volume quotas, Reuters reported.

Victor Manuel Ochoa, CEO of Mexican pork producer Granjas Carroll, however expects pork prices in Mexico to rise around 15% or 16% due to the tariffs.