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Mexico announced a tariff on imports of steel, pork and Bourbon from the United States on Tuesday in retaliation for us president Trump Juae's move to import steel and aluminum and aim at the U.S. Republican base. The United States Congress is about to hold a midterm election in November.
Mexico's return further exacerbated trade tensions with the United States and made the negotiation process of the North American Free Trade Agreement (NAFTA) more difficult in Canada, the United States and the Mexico.
Mexico is the largest export market for pork producers in the United States, so they are alarmed by the tariff act.
Trump abolished tariff exemption for steel and aluminum imports from Mexico, Canada and the European Union last week, which shocked some us close allies.
At the same time, Kudelo (Larry Kudlow), director of the White House National Economic Commission (Larry), also said on Tuesday that Trump could sign bilateral trade agreements with Canada and Mexico to replace NAFTA. Both Canada and Mexico are opposed to this.
With the immediate effect of new Mexico tariffs, Mexico's peso MXN=MXN=D2 fell to its lowest level since February 2017, showing the bottom of the main currency, which was affected by the news.
Mexico's retaliation list in the government's official gazette, including 20% tariffs on American pork legs and pork shoulder meat, apples and potatoes, and a 20-25% tariff on all kinds of cheese and Bourbon.
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