RETALIATORY tariffs targeting US good have started late this week as the impact of Trump tariff measures on neighbours, Mexico and Canada plus China take effect.

On Tuesday, the White House announced that new tariffs on goods imported from Mexico and Canada and an increase in the tariff rate on certain goods from China would take effect the same day.

The situation remains fluid, with last-minute postponements now applied on threatened tariffs on goods out of Mexico until April 2.

China’s Ministry of Finance yesterday slapped a retaliatory 10pc tariff on all US imported chilled and frozen beef, both boneless and bone-in, along with beef offals, pork, seafood, fruit and vegetables, dried and canned foods and cheese. Higher 15pc tariffs now apply on US poultry, wheat and corn entering China.

This followed the US government’s announcement on March 3 that it would impose a further 10pc tariff on all Chinese goods exported to the US “on the grounds of fentanyl.”

Noteworthy trade-related remarks from US President Trump on social media this week included:

“I love the US farmer. Who will now be selling into our home market, the USA, because nobody is going to be able to compete with you because those goods that come in from other countries and companies, they’re really, really in a bad position in so many different ways. They’re uninspected. They may be very dirty and disgusting and they come in and they pour in and they hurt our American farmers. The tariffs will go on agricultural products coming into America. And our farmers starting on April 2, it may be a little bit of an adjustment period. We had that before when I made the deal with China, $50 billion of purchases and I said just bear with me and they did, they did. Probably have to bear with me again and this will be even better.”

While specific details are not yet available, President Trump announced on social media yesterday that he would pause the new 25pc tariffs on goods imported from Mexico until April 2.

The tariffs had gone into effect on 4 March and Mexican President Claudia Sheinbaum had been expected to announce retaliatory measures on Sunday. The decision to delay the tariffs followed a call between Presidents Trump and Sheinbaum yesterday.

The White House had announced a more limited tariff delay on Wednesday – a one-month tariff exemption on US automakers’ imports from Mexico and Canada, provided that their imports comply with rules established under the US-Mexico-Canada Agreement (USMCA).

US Commerce Secretary Howard Lutnick also confirmed yesterday that the Trump administration was considering exemptions for trade of other goods compliant with USMCA, including some agricultural products. Details remain unclear.

It is not yet known if exemptions will be granted for any additional imports from Canada, or if the automaker exemption will impact the retaliatory measures Canada announced earlier this week. Canadian Prime Minister Justin Trudeau has insisted that Canada will move forward with its retaliatory measures unless all new US tariffs on imports from Canada are removed.

Canada has also submitted a formal complaint with the World Trade Organisation.

Canada’s retaliatory measures announced earlier this week included immediate application of 25pc retaliatory duties on imports of US goods worth C$30 billion, plus a second list of duties on imports valued at C$125 billion.

If US tariffs are not removed, these duties are to take effect in 21 days, following a public comment period that ends March 25, the Canadian Government said.

Canada has confirmed it intends to apply 25pc tariffs on imports of US beef, pork and lamb, as well as live cattle, pigs and sheep, in its second tranche.

Korean Government responds to Trump’s comments on tariffs

South Korean officials responded to remarks made by President Trump’s to a joint session of Congress on Tuesday in which he stated that Korea’s tariffs are “four times higher” than those imposed by the US.

The Korean Ministry of Industry explained that while Korea’s Most Favored Nation tariff rate is 13.4pc, compared to the US rate of 3.3pc, this rate applies only to World Trade Organization member countries that do not have a bilateral trade agreement with Korea.

The Ministry noted that under the Korea-US FTA, Korea’s average effective tariff rate on US imports currently stands at 0.79pc. US pork currently enters Korea at zero duty, while for US beef, which was tariffed at 40pc before the FTA, the current duty rate is 2.7pc and will be duty-free by 2026.

US Meat Export Federation President Dan Halstrom issued a statement on the tariff developments earlier this week:

USMEF is obviously disappointed that no agreements have yet been reached that would avoid or postpone tariffs on goods from Mexico and Canada, as well as the tariff increase on goods from China. We are reviewing the retaliatory measures announced by Canada and China and are watching for details on the response from Mexico. These three markets accounted for $8.4 billion in US red meat exports last year, including nearly $4 billion to Mexico. While the United States is the primary supplier of pork and beef to Mexico, US red meat has already been facing heightened competition in this critical market.

Last year U.S. beef exports equated to more than $415 per fed steer or heifer slaughtered and pork exports equated to more than $66 per head slaughtered. These exports, a large share of which are underutilised cuts and variety meat, help producers maximize the value of every animal produced and allow US consumers to enjoy more of the cuts they prefer.