Source: Susan Kelly, MEATINGPLACE, 5/31/19


President Donald Trump's newest trade salvo has meat exporters back on high alert.

Trump on Thursday night announced plans to impose a 5% tariff on imports of all goods from Mexico beginning June 10. In a statement, Trump said the tariff is in response to continued large-scale illegal immigration from Mexico. “From a safety, national security, military, economic, and humanitarian standpoint, we cannot allow this grave disaster to continue,” the president said.

He said the tariff would be removed if Mexico takes “effective actions” to stem the migration. Otherwise, tariffs will progressively rise as high as 25% by the beginning of October.

In a statement, the National Pork Producers Council (NPPC), urged Trump to move forward with ratification of the United States-Mexico-Canada trade agreement preserving zero-tariff trade in North America for the long term.

U.S. pork producers lost $12 per hog over the past year due to trade retaliation by Mexico, which was lifted last week, NPPC said, citing research from Iowa State University economist Dermot Hayes.

“American pork producers cannot afford retaliatory tariffs from its largest export market, tariffs which Mexico will surely implement,” David Herring, NPPC president and a pork producer, said in a statement.

Stephens analyst Ben Bienvenu noted Mexico was the No. 1 export destination for U.S. pork and chicken in 2018 and the third-largest market for U.S. beef. Exports to Mexico accounted for 6.1% of U.S. production in 2018, even in the face of 20% tariffs on most U.S. pork products in retaliation for U.S. duties on Mexican steel.

The U.S. Chamber of Commerce is considering legal action against the White House in response to the duties, an executive with the group told reporters on Friday, CNBC reported.

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