2018.06.0522:26:00UTC+00Mexico Hits Back against Steel Duties with Tariffs on U.S. Imports

Mexico has announced new levies on U.S. imports in response to U.S. President Donald Trump's decision to impose hefty tariffs on imports of steel and aluminum.

The peso fell on Tuesday after Mexico imposed tariffs on U.S. products including bourbon, apples, potatoes, cheese, and pork in retaliation to the steel duties.

Mexico's peso was down 1.4 percent at 20.35 to the dollar in early trade.

The announcement of tariffs ranging from 15 percent to 25 percent came as the future of the NAFTA trade deal came under new pressure from the White house. The list of U.S. products subject to fresh tariffs did not include the top two US agricultural exports to Mexico: Corn and soybeans. This would enable the animal feed products to continue to enter Mexico's domestic livestock and poultry industries.

The new tariffs came after the Trump administration restated its desire to push for bilateral talks on NAFTA with Mexico and Canada. According to Larry Kudlow, economic adviser to Trump, Washington was now inclined towards such change, saying that countries that are different potentially deserves varying deals. Mexico has opposed such attempts to split the NAFTA allies.

Jaime Zabludovsky, one of Mexico's original Nafta negotiators, said Trump's desire to negotiate separately was senseless and also put the interests of US private sector at risk.