Mexico imposes punitive tariff of 10% on US pork products

The Government of Mexico has imposed a punitive tariff of 10% on unprocessed pork, set to increase to 20% from 5 July, as a retaliatory measure for the recent tariff imposed by the US on its metal exports.

The unprocessed meat specification does not include variety meats.

Mexico’s decision comes after China imposed a similar punitive tariff on the US in early April.

US pork imports to China have been levied a 25% tariff, which is said to have reduced live hog values by as much as $18 per animal on an annualised basis.

National Pork Producers Council (NPPC) president Jim Heimerl said: “The toll on rural America from escalating trade disputes with critically important trade partners is mounting.

“Mexico is US pork’s largest export market, representing nearly 25% of all US pork shipments last year.

“A 20% tariff eliminates our ability to compete effectively in Mexico. This is devastating to my family and pork producing families across the US.”

NPPC is a trade association representing US-based pork producers, which currently protects the livelihoods of 60,000 pork producers.

Heimerl further added:  “We appreciate the variety of interests and issues the Trump administration is balancing in its trade negotiations with Mexico, China and other countries.

“While producers are trying to be good soldiers, we’re taking on water fast.

“The president has said that he would not abandon farmers. We take him at his word.”

The US pork sector provides 500,000 employment opportunities across the country’s rural regions and more than 110,000 of these jobs are directly linked to pork exports.

According to NPPC, the current level of uncertainty in the export market comes at a time when US’s pork industry is expanding its production to record levels.

A total of five additional new pork processing plants are set to open or have recently opened, which will increase the country’s pork production capacity during 2019 by approximately 10% from 2015 levels.

The US has been the top global supplier of pork, on average, for more than 10 years.