Perdue to Meet with Mexicos Ag Minister
Just a few weeks ago, agriculture groups were celebrating the administration’s agreement to lift steel and aluminum tariffs against Canada and Mexico, and last week, U.S. Trade Representative Robert Lighthizer sent a letter to congressional leaders to kick off the process of approving the successor to NAFTA.
But now, farmers could find themselves back in the thick of trade tension with Mexico, after President Donald Trump last week threatened tariffs on all Mexican goods until the country curbs illegal immigration into the U.S.
Mick Mulvaney, Trump’s acting chief of staff, said the president is “absolutely, deadly serious” about the duties. “I fully expect these tariffs to go on to at least the 5 percent level on June 10,” Mulvaney said on Fox News Sunday.
President Trump said Monday that Mexico is sending a delegation to Washington to discuss immigration issues. In the meantime, among agriculture sectors that could be caught in the crossfire if tariffs proceed: pork, wheat, and dairy.
Pork producers count Mexico as their largest export market, and they “cannot afford retaliatory tariffs … which Mexico will surely implement,” said National Pork Producers Council President David Herring. NPPC estimates trade disputes with Mexico and China have cost the pork sector $2.5 billion over the past year.
Wheat groups in a joint statement said they were “shocked and dismayed” by Trump’s latest tariff threat, which could diminish Mexican demand for U.S. wheat as growers feel the pinch of low prices and bad weather.
Dairy farmers also fear a return of retaliatory duties against U.S. cheeses, for example, which Mexico lifted just last month. The National Milk Producers Federation estimates that U.S. dairy has lost $2.3 billion in revenue through March due to retaliatory tariffs.
Agriculture Secretary Sonny Perdue is expected to meet with Mexican Agriculture Minister Víctor Manuel Villalobos soon about how the duties would affect ag trade between the North American neighbors.
Sources: Politico, Bloomberg