Tarrif on Mexican Imports and Natural Gas in Mexico
The Trump administration is considering a 20% tax on Mexican imports to finance a border wall ... and that has U.S. farm groups worrying about retaliation and possibly losing a major foreign market for rice, wheat, dairy, pork and many other ag com modities.
White House spokesman Sean Spicer says that Trump is considering the tariff to pay for the wall and has consulted with leaders in Congress about it.
Between 2016 and 2020, some 60% of Mexico's electric capacity additions are projected to come from natural gas-fired power plants.
The U.S. Energy Information Administration predicts this will lead to increases in U.S. natural gas exports to Mexico.
EIA reports that Mexico's national energy ministry projects an increase in natural gas demand by the power generation sector from 3.6 billion cubic feet per day in 2015 to 5.4 billion in 2029.
Significant natural gas capacity additions are expected to continue through 2029.