Threats of retaliatory tariffs prompted by Trump have cost Iowa pork industry $560M: report

Threats of retaliatory tariffs prompted by Trump have cost Iowa pork industry $560M: report
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Concerns over retaliatory tariffs from Mexico have cost Iowa pork producers roughly $560 million, the Des Moines Register reported Friday.

According to the newspaper, Iowa pork producers could take another hit if Mexico follows through on its threat to impose a 20 percent tariff on hams and pork shoulders from the U.S.

Producers in the state already face a 25 percent tariff on pork exports to China. But duties from Mexico — the largest export market for American pork by volume — could put further strain on producers. 

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Iowa is the largest pork producer in the U.S., according to Gregg Hora, the president of the Iowa Pork Producers Association. Hora told the Register that the threatened tariffs are "potentially devastating news for Iowa’s pig farmers and the rural Iowa economy."

While the possible tariffs from Mexico would hurt U.S. pork producers, it would ultimately drive down the cost to consumers, the Register reported.

The tariff threats from Mexico came after President TrumpDonald John TrumpLondon terror suspect’s children told authorities he complained about Trump: inquiry The Memo: Tide turns on Kavanaugh Trump to nominate retiring lawmaker as head of trade agency MORE announced Thursday that the U.S. would impose steep duties on steel and aluminum imports from Canada, Mexico and the European Union (EU). 

Those markets had initially been exempted from the tariffs when they were first announced in March. But Commerce Secretary Wilbur RossWilbur Louis RossThe booming economy trumps Trump's trade battle with China On The Money: Senate approves 4B spending bill | China imposes new tariffs on billion in US goods | Ross downplays new tariffs: 'Nobody's going to actually notice' Ross: 'Nobody's going to actually notice' new tariffs on China MORE said that trade talks had not advanced far enough to warrant a continued exemption. 

In turn, Canada, Mexico and the EU proposed a series of retaliatory tariffs on U.S. goods, ranging from blue jeans, to bourbon and yogurt.

Canada and the EU have also brought cases against the U.S. at the World Trade Organization.