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US under Trump Series: US rivals would look to make an ally of Mexico

Mexico faces many economic hurdles ahead, especially during the tenor of the US President Donald Trump who has been very critical of North American Free Trade Agreement (NAFTA), a backbone of the Mexican economy and has vowed to renegotiate it. Mr. Trump has also promised that Mexico would be paying for the border wall that would be constructed along the southern border with Mexico, stretching 3200 km. Even though the American people feel that these promises are fair, it has created a rift between the administrations of the two countries. Mexico has promised that it would take retaliatory measures if the US takes up actions to curb its imports and impose taxes in order to pay for the wall.

However, these are hardly the biggest of risks that the US runs by alienating Mexico. While the economic retaliation from Mexico may prove punitive, its geopolitical importance to the US can’t be ignored. Many of the traditional US rivals would and already are looking for ways to make the best out of the rift between the two countries. While President Trump has attacked transportation companies planning to shift production overseas, especially to Mexico, the richest man in Mexico, Carlos Slim is looking to tie up with China to focus on the Mexican market. Expect more Chinese investments and trade deals with Mexico over the next year or so.

 

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