Trump’s economic and political threat to Mexico

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Mexico will Know His destiny immediately after the day of April. Donald Trump called on April 2 to “Liberation Day”. For Mexicans, it will be the moment when they will detect the amount of economic damage that wins their country.

Most of the world economy will probably be stimulated by tariffs, the United States is scheduled to announce on April 2. But the stakes are especially high for Mexico. Trump has already imposed 25 percent tariffs both in Canada and Mexico. About half of these new duties quickly kept. But they could all be transformed next week.

The fate of Mexico is worth watching two main reasons. First of all, the unusual dependence of the economy on the export of the United States means that Mexico’s social and political stability is endangered. Mexican economists believe that Trump tariffs in their country will be depressed in their worst case.

The second reason is that Mexico offers a test case on how to deal with Trump. While Canada is withdrawn America According to spoken and mutual tariffs, Mexican President Claudia Shinbaum has played pleasant. He stressed his respect for Trump and now abstained from imposing his response tariffs. “Shinbaum” also agreed to send 10,000 troops to keep the US-Mexican border for 29 high-quality American drug cartel.

Sheinbaum was rewarded with Praise of Trump, who called her a “wonderful woman.” He also enjoys the rating ratings of highly high in heaven at home. Internedly, he remained as an example to treat Trump with America, about which New York Times praises his pragmatism and economist, welcoming his “diplomatic nob”.

Reality is more complicated. Like Luis de la Calle, a leading trade economist, pointed out For me in Mexico Last week Canada and Mexico have been treated quite well by Trump administration. Critics of Shikaba also say that the Mexican economy and future contribution, nominating the plan to shoot the judges of all countries and replace them with elected officials.

He is already fighting with the local economy, the sheebayum needs to be bad for cutting his break. But, unfortunately, Trump’s grievances are going out of trade for Mexico.

Last month, the White House insisted. “Mexican drug trafficking organizations have an intolerable alliance with the Mexican government.” Joshua Treviooo of First Policy Institute commented It is necessary that this statement was a “seismic statement that denies a new era of confrontation between the two peoples.”

There is a serious debate within the Republican Party that the United States should use military forces to hit drug cartels within Mexico. This month, defense priorities, more thinkers who are influential in the world of Trump, warned. Some influential Mexicans will calmly say that there may be nothing bad if the Trump’s administration motivates their government to take more aggression against drug gangs, maybe significant American means.

The damage that a cartel is doing to Mexican Society is highlighted by a terrible discovery of famous “POLITICS” In the village where the recruited recruits of the crime seemed to be killed. More than 100,000 people are missing in Mexico, many believe that they are cartel victims.

But unilateral American military strikes against cartel. While they can invite joy from Trump base, the Mexican government will put it in an impossible position. They also risked the United States to reach another open conflict without attacking the root causes of the problem, which includes weapons flow from the United States to Mexico and American drugs.

Offering tariffs are the right tool to trade with drugs, illegal immigration and trade at the same time, Trump has become more difficult for Mexico, a reasoned answer. Thus, sheinbaum remains, trying to be humorous and pleased the US President, at the same time hoping that he is distracted or that his counselors make him a reason.

The reality is that tariffs were disrupting the most advanced parts of the Mexican economy and to make the country poorer. At the bottom, the spiral will most likely lead nationalism and anti-democratic populism, while increasing the strength of organized crime and to try to pass more to the United States.

Mexico’s greatest hope is that the United States itself will be restored from the overall pain caused by the tariff war. Americans rely on cheap, reliable supplies from Mexico for everything: fruits and vegetables to car spare parts and medical equipment. Higher inflation would quickly feel in the United States, while the promised country of America would come for a long time if it ever happened at all.

The southern neighbor and the largest commercial partner, the largest commercial partner, is obviously a bad idea for the US and Mexico. But, unfortunately, this is not a guarantee that this will not happen.

Gideon.rachman@ft.com:

 
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