Source: POLITICO'S MORNING AGRICULTURE, 6/6/18

 It was another stomach-wrenching day for the nation's farmers after Mexico announced its list of retaliatory tariffs. Pro's Sabrina Rodriguez reports that the list of goods aims squarely at U.S. agricultural products like pork shoulders and legs, apples, ham, potatoes, and some cheeses.

All U.S. products on Mexico's list have lost preferential tariffs established under NAFTA, and all of the U.S. products on the list face tariffs of about 15 to 25 percent. The tariffs are expected to go into effect on July 5.

Why hit ag? Mexican officials have selected a number of U.S. products "that have implications in some districts where there's important congressmen and senators" so that it would affect "voters and citizens that live in the districts of people who have a voice and vote in the American Congress," Mexican Economy Minister Ildefonso Guajardo said last week. Notably, the tariff list did not include imports of U.S. corn and certain other vital commodities in Mexico.

Pork's problem: Sabrina also reports that these changes would be "devastating" to the U.S. pork industry. "The toll on rural America from escalating trade disputes with critically important trade partners is mounting," Jim Heimerl, a pig farmer from Johnstown, Ohio, and president of the National Pork Producers Council, said.

Right away, U.S. pork will no longer qualify for preferential tariffs established under NAFTA, and next month, it will face a 20 percent tariff. "A 20 percent tariff eliminates our ability to compete effectively in Mexico," Heimerl said.

Still, he stopped short of blaming Trump, saying he appreciates "the variety of interests and issues the Trump administration is balancing in its trade negotiations with Mexico, China and other countries."

Meanwhile, Reuters reports that Mexico will turn to Europe for more of its pork imports.

Little respite from China: USDA Secretary Sonny Perdue told reporters during a town hall meeting on Tuesday that talks between U.S. and Chinese officials on dropping tariffs on imports of American farm goods have been challenging to tackle because of Beijing's own market needs.

"Pork, unfortunately, seems to be the one sector right now, with the 25 percent tariff, that is more difficult to discuss with the Chinese," Perdue said. "They indicate they have a domestic glut as well. Oftentimes, when you have as much as you need at home, you're willing to put up barriers against imports."

Other problems for ag: Other angry trade partners aren't far behind: Canada is imposing its own retaliatory list on July 1 and Europe has its own retaliatory plans that could take effect in mid-June.