Mexico has released the list of U.S. products that will see tariffs of 10 percent to 45 percent. The move is in retaliation for the U.S. scrapping a test program allowing Mexican trucks to deliver goods beyond a U.S. border zone.
Among affected goods are certain fruits and vegetables, wine, juices, sunglasses, toothpaste and coffee, according to a government statement. Most tariffs are 10 percent to 20 percent, with unspecified fresh products subject to a 45 percent charge. The tariffs will apply to $2.4 billion of goods and take effect today.
Talks to diffuse the first trade dispute of President Barack Obama's administration can't begin until the U.S. has a Commerce Secretary, Economy Minister Gerardo Ruiz Mateos said. Discussions to resolve the dispute will start once his counterpart, Gary Locke, is confirmed by the Senate, the economy minister said.
Among the 90 products on Mexico's list are potatoes, cherries, mineral water, photocopy and toilet paper, as well as wireless phones, tickets for public events and the lottery. The list doesn't include corn.
"We're waiting to begin work," Ruiz Mateos said. "Unfortunately, the U.S. Senate hasn't designated our counterparts yet."
The tariffs "will have a big impact on the companies that export those items," said Sidney Weintraub, a specialist in international economics at the Center for Strategic and International Studies in Washington. "It could take them out of the market."
Mexico is the second largest U.S. export market for agricultural products, said John Murphy, vice president of Latin American affairs for the U.S. Chamber of Commerce. He couldn't immediately say which companies would be most affected.
Editor's note: The list has been added in a box to the right of your screen.
Products that face higher tariffs beginning today:
Christmas trees 20 percent
Onions 10 percent
Cabbage 10 percent
Pears 20 percent
Apricots 20 percent
Potatoes 20 percent
Pork rind 20 percent
Almonds 20 percent
Cherries 20 percent
Fruit juice 20 percent
Soy sauce 20 percent
Mineral water 20 percent
Wine 20 percent
Beer 20 percent
Dog and cat food 10 percent
Manicure and pedicure tools 15 percent
Shampoo 15 percent
Hair conditioner 15 percent
Toothpaste 15 percent
Shaving products/after shave 15 percent
Deodorants and antiperspirant 15 percent
Dinnerware 15 percent
Statues and decorative artwork 20 percent
Copy paper 10 percent
Toilet paper 10 percent
Notebooks 10 percent
Pencils 20 percent
Event or lottery tickets 20 percent
Plastic identification cards 20 percent
Curtain rods or hanging tools for blinds 20 percent
Coffee makers 20 percent
Cordless telephones 20 percent
Sunglasses 15 percent