Mexico Slaps U.S. With $2.4 Billion Tariffs on 90 Products

Mexico slapped the United States with $2.4 billion worth of tariffs on 90 unnamed industrial and agricultural products. The move comes in retaliation after the U.S. Congress cancelled a pilot program that would allow a handful of Mexican truckers to deliver goods throughout the U.S.

According to Gerardo Ruiz Mateos, Mexico’s Economy Minister, the tariffs are allowed under the 1994 North American Free Trade Agreement (NAFTA). “We consider this action by the United States to be wrong, protectionist and clearly in violation of the treaty,” Ruiz Mateos added.

Mexico’s actions might be coming at one of the worst times in the U.S.’ economic history. In January, exports from the U.S. to the world fell 12.5% from the month prior. Since August the figure has plummeted 33.45%. To Mexico alone, that figure has fallen to levels last seen in Jul. 2005 or by 34% since August.

U.S.’ southern neighbor might be hurting itself too. Mexico’s Peso has tanked after hitting a 6-year high against the U.S. Dollar of 9.85 on Aug. 04th. It reached an all-time low only three days ago of 15.58. Such a violent change in price will make it more expensive for Mexicans to purchase goods produced north of its border. But with the enactment of such tariffs, the inflationary pressure felt from Peso weakness will only be exacerbated. Thus the new trade policy may actually prove to hurt Mexico as much as it does the United States.