By Illinois Radio Network / Cole Lauterbach
SPRINGFIELD – Mexico is fighting back on aluminum and steel tariffs by slapping its own tariffs on U.S. pork and other products, which could affect Illinois agriculture.
Mexico announced a 20 percent tariff on pork earlier this week. Mexico is a major pork consumer, and Illinois Farm Bureau Senior Economist Mike Doherty said pork is Illinois’ largest livestock market, as plenty of Illinois’ corn crop goes to feed those hogs.
“Any export of pork meat is going to include some of Illinois’ pork and that Illinois pork concentrates the value of the corn we grow,” Doherty said.
Doherty said exporting to large pork-consuming countries like Mexico and China has helped farmers keep prices higher. Both of those markets are big pork buyers and have growing populations, which make for a good emerging market for Illinois pork producers.
“That this is not good news would be a tremendous understatement with Mexico being a primary pork export market for us,” Doherty said.
Doherty said China’s recent addition of a 25 percent U.S. pork tariff is already being felt by Illinois pork producers.
“Compared to previous years at this point of time in this season, our pork exports to China have decreased,” he said. “So it does show that it’s having an impact.”
Doherty said the escalating trade war could have lasting implications for both Illinois’ pork and corn industries.
“If we don’t negotiate ourselves back to the free trade, no tariffs position we were in or that we were doing, then we basically all lose,” he said.
Mexico said it will impose tariffs of 15 to 25 percent on U.S. steel products, and 20 percent on pork legs and shoulders, apples and potatoes. Bourbon and some cheeses will have tariffs of 20 to 25 percent. The trade war began to escalate this week after the U.S. imposed tariffs on aluminum and steel imports from Canada, Mexico and the European Union.
