Mexico, angered by a ban on its trucks entering the United States, slapped tariffs on 90 U.S. products -- a move effective today that could cost Oregon exporters tens of millions of dollars.
The duties include 20 percent tariffs on Christmas trees, pears and frozen potatoes, all of which Oregon sells to Mexico. A Mexican official confirmed his government chose the $2.4 billion worth of products partly to target states with powerful Democratic politicians.
Mexican tariffs
Mexico is placing tariffs on 90 U.S. products, including several important to Oregon agriculture:
Christmas trees: 20 percent
Pears: 20 percent
Frozen potatoes: 20 percent
Cherries: 20 percent
Wine: 20 percent
Onions: 10 percent
Mexico spent $748 million last year on goods from Oregon -- a state dominated by Democrats, from the governor to Congress.
The global economic meltdown is sparking protectionist measures worldwide. Footwear and apparel makers such as Oregon-based Nike and Columbia Sportswear fear a proliferation of tariffs on products made in China and elsewhere abroad.
Mexico's abrupt move this week came in retaliation for a provision supported by the Teamsters union and tacked onto a major spending bill that President Barack Obama signed earlier this month.
"The vote was to save jobs for the unions, but it's going to cause problems for several other industries," said Bill Brewer, executive director of the Oregon Potato Commission.
He said the United States could lose its entire $80 million in annual french-fry exports to Mexico, for example, because Canadian competitors won't have to pay $16 million in tariffs. Most of those fries come from the Northwest.
