American pork producers are bracing for pain ahead after confirmation Tuesday that Mexico will levy hefty tariffs up to 20 percent on U.S. pork in retaliation for the Trump administration's duties on Mexican steel and aluminum products.
But it might be good news for U.S. supermarket shoppers buying bacon, at least for a little while. Mexico's tariffs could lead to more pork supplies staying in the domestic market and lower consumer prices in the short term.
Mexico also announced tariffs on several other agricultural products, including apples, potatoes and cheese as well as on American bourbon. The tariffs will amount to between 15 percent to 25 percent.
Mexico's tariff on American pork applies to the animal's legs and shoulders. It also follows China slapping tariffs on U.S. pork earlier this year.
On Tuesday's news, July lean hog futures fell more than 2.3 percent on the Chicago Mercantile Exchange in early trading. The hog futures recouped some of the earlier losses but settled down 1.4 percent in the session.