Mexico slaps tariffs on US exports

In retaliation to the restrictions imposed on the movement of its trucks across the border by the US, Mexico has slapped tariffs on American exports to the country, raising fears of a trade war.

The Mexican government said on Monday it would slap tariffs on 90 US industrial and agricultural products in retaliation of a Congressional action which ended the programme giving Mexican trucks access to US highways.

The 2009 Omnibus appropriations Bill, passed by the Congress, terminated the project between the two countries.

Observing that the administration recognises the concerns of Mexico, White House Press Secretary Robert Gibbs said, US President Barack Obama has asked his officials to come out with a legislation creating a new trucking project that will meet the legitimate concerns of the Congress and our North American Free Trade Agreement commitments.

"Senator Byron Dorgan, sponsor of the amendment that ended the programme, has written to us to express his willingness to work with the administration in good faith to address this issue," Gibbs said.

The Congress has opposed the project in the past because of concerns about the process that led to the programme's establishment and its operation, Gibbs added.