· On June 5, 2018 Mexico published a list of products to face retaliatory tariffs in the Official Gazette (Diario Official), in response to steel and aluminum tariffs that the United States has imposed pursuant to Section 232 of the Trade Expansion Act, as amended.
· Mexico’s list is concentrated in two main product groupings:
o Agricultural products, particularly pork products
o Metals and ores, principally steel products
· Effective immediately (June 5, 2018), Mexico suspended NAFTA preferential tariff rates and imposed tariffs ranging from 7-25 percent on 71 national tariff lines for U.S. originating goods.[MS1]
o Starting July 5, 2018, the retaliatory tariffs on certain pork and cheese products will increase again beyond the rates imposed as of June 5, 2018 (refer to the official Decree from Mexico for specific products).
o Mexico has also implemented a duty-free quota of 350,000 tons on imported pork legs and shoulder cuts (bone-in and boneless, HS Codes 0203.12.01, 0203.19.99, 0203.22.01 and 0203.29.99) that will be in effect through the end of 2018.
o The quota is open to Mexican pork processors and imports can be sourced from any country eligible to export pork to Mexico. This includes the United States.
· All new retaliatory tariffs on U.S. originating goods applies to goods for permanent importation. U.S. originating goods identified in the Mexican Decree will not face tariffs if imported under sectoral promotion programs used for re-export
· The Mexican Government has stated that it reserves the right to adjust the products and associated tariffs used in retaliation for U.S. steel and aluminum tariffs.