Mexico hits US pork, grapes in retaliation against tariffs

Mexico hits US pork, grapes in retaliation against tariffs

The tariff dispute comes as Canada, Mexico and the U.S. try to reach an agreement to update the North American Free Trade Agreement in talks triggered previous year by Trump's discontent with that deal.

The economy ministry said it will "initiate a dispute settlement process under the umbrella" of the WTO, and that its actions will "continue to follow the state of global commercial law and will be proportional to the damage that Mexico regrettably received".

Trump has infuriated European Union members, Canada and Mexico by imposing tariffs of 25 percent on steel and 10 percent on aluminium, ending months of uncertainty about potential exemptions and suggesting a hardening of the USA approach to trade negotiations.

Chinese officials, who have engaged in negotiations with United States officials this week, said they will not sign any agreements if tariffs are again increased.

The Mexican currency slid for a fourth day on Tuesday, dropping 1.4 percent to 20.3488 in morning trading in NY, the sharpest retreat among major currencies.

Mexico is set to elect its next president on July 1 and Andres Manuel Lopez Obrador, a leftist firebrand who has argued for more reliance on domestic production, is firmly in the lead with a margin of as much as 20 percentage points, according to the Bloomberg Poll Tracker.

Canadian Prime Minister Justin Trudeau said the assertion that the tariffs are a response to national security threats is "insulting and unacceptable".

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The tariff increases are created to hit areas that are politically favorable to Trump, such as pork production, Mexican experts said.

The Journal reported that during the talks, Liu made clear to Ross that the $70 billion offer would be withdrawn if the USA proceeded with its threat to impose tariffs on $50 billion of Chinese products.

The group rejected "the protectionist measures of the United States government".

The initiative, which would be implemented if the Trump administration calls off its tariff threats, came as part of negotiations this past weekend in Beijing, the report said. Although Washington wants its deficit with China to average $15 billion monthly, it will likely also hover around last month's $26 billion.

U.S. President Donald Trump was scheduled to meet with his trade advisers on Tuesday to discuss China's offer, Reuters reported.

Pena Nieto had previously scrapped a visit in January past year because of Trump's insistence that Mexico pay for the wall, which he wants as part of his efforts to curb immigration.

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