Tit-for-tat: Tariffs and trucks

It’s no empty threat — Mexico will be slapping high tariffs on almost one hundred U.S. products beginning tomorrow, according to its economy minister.  That’s in retaliation for the U.S. reneging on its NAFTA agreement through defunding a pilot program that lets Mexican trucks bring goods into the U.S.

And it’s not just small potatoes (although those are included).  The affected products include a wide variety of U.S. goods — from juices and wine to sunglasses and toilet paper.  Although tariffs on most of the goods will be 10 to 20 percent, a steep duty of 45 percent will be assessed on some fresh products.  The tariffs will apply to $2.4 billion of goods.

Mexican officials said they want to pressure the U.S. Congress to reinstate the trucking program that was discontinued in the spending bill President Obama signed last week.

As protectionism heats up both here and abroad, expect to see more tit-for-tat trade disputes.