Eye on Trump strongholds, Mexico hits back with pork, bourbon tariffs

Theresa May and Donald Trump

GETTYMay will try to persuade Donald Trump to reverse his steel and aluminium tariffs

But so far it hasn't forced Canada, Mexico, or China to budge.

Addressing the trade union conference, Corbyn is expected to say: "Donald Trump's government doesn't support workers". "Tariffs and other trade barriers make us poorer".

"China behaves logically, because the United States trade deficit is the result of the inefficient American economy", the Russian academic opined.

"We're anticipating that some conversations are going to happen this week at the G7", he added, in reference to the leaders' summit in Charlevoix, Que.

Trump won the presidency with the help of farm-heavy states like Pennsylvania, Wisconsin, Ohio, and Indiana.

United States' pork exports to Mexico were worth more than USA $1 billion previous year, according to government data, and between 2010 and 2017, 89.2% of all pork exports to Mexico came from the U.S.

The EU, Canada and Mexico were granted exemptions when Trump imposed the tariffs in March, saying a reliance on imported metals threatened national security.

Nearly 90 minutes later came the White House's summary of the call, which did not mention any blunt tariff talk by Trump's British counterpart.

That last statement can be read in the context of an announcement last week that tariffs on US$50 billion in Chinese goods will be proposed on June 15. But just nine days later, a White House statement declared the USA intention to place a 25 percent tariffs on $50 billion worth of Chinese imports, focusing on technology products. Those tensions continued last week, with Navarro dismissing Mnuchin's quote that the Trump administration was "putting the trade war on hold" as "an unfortunate soundbite".

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Trade with the U.S.is particularly important to Mexico because about 80% of its exports go to its northern neighbor whereas only around 16% of USA exports come to Mexico. All three groups are relying on the same messaging, claiming the tariffs will hamper the United States' ability to compete on a global scale while throwing the USA economy into a trade war it can't win.

And with China, things have shifted from an apparent truce a few weeks ago toward the prospect of escalating tariffs on both sides, after a high-stakes meeting over the weekend between Commerce Secretary Wilbur Ross and Chinese Vice Premier Liu He in Beijing bore little apparent fruit.

Based on the solid rally in the stock market, I think investors are saying the countries involved don't have the fire power to retaliate strong enough to disrupt the US economy or dramatically effect corporate earnings.

He has echoed the administration's position that America has gotten the short end of the stick from China.

He said: "We still want to see what the measures themselves are, specifically we have been talking to the Irish government about the issue of bourbon being on the list because of the potential implications for the Scotch whisky industry and the Irish whiskey industry".

Despite such reports warning that the real US-China tariff battle is finally set to begin, there is no timetable for an imposition of tariffs (unless "shortly thereafter" constitutes a timetable), should they be announced next week.

Canada and Mexico say they are still committed to the deal, but U.S. President Donald Trump has returned to his former position of threatening to get rid of the decades-old NAFTA deal altogether.

As he walked into his weekly cabinet meeting, Prime Minister Justin Trudeau didn't rule out financial aid. In theory, taxing items coming into the country (imports) makes people less likely to buy them as they become more expensive.

If they stand pat and call Trump's bluff, then he will have no big trade agreements to show voters - only tariffs.

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