Grupo Hotelero Islazul
Cervecería Centroamericana S.A.
Cuba Energy Summit
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
MuniGuate
INOR
Nestle
CUN-HAV Enjoy Travel Group
AVA Resorts
Cubasol
blackanddecker
Herbalife
Servicios Médicos Cubanos
MAD-HAV Enjoy Travel Group
Barceló Solymar
Instituto Hondureño de Turismo
Agexport
INTERFER
Walmart
MITM Events
Intecap
Realidad Turística
Los Portales

Mexico To Feel Initial Blow from Trump Victory but Has Room to Negotiate

Date:

Share:

Nestle
MITM Events
Grupo Hotelero Islazul
Cervecería Centroamericana S.A.
Intecap
AVA Resorts
INTERFER
Los Portales
Realidad Turística
Servicios Médicos Cubanos
INOR
Instituto Hondureño de Turismo
Cuba Energy Summit
Herbalife
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
blackanddecker

Mexico must maneuver carefully now that Donald Trump has secured his return to the U.S. presidency, but Mexico’s President Claudia Sheinbaum still has room to negotiate and soften the impact on trade, migration and security.

Trump’s campaign rhetoric, including 200% tariffs on cars coming from Mexico, mass deportations, and U.S. military action against drug cartels, puts Sheinbaum in a difficult position. An initial deterioration in the relationship between the two countries – and a blow to the Mexican peso – is likely.

But in the longer term, analysts say, Mexico has some leverage, particularly on migration, that could help dilute some of Trump’s pledges in areas such as trade and security.

“What we know about Trump is that he is transactional,” said Mariana Campero, senior associate with the CSIS Americas Program.

Campero said Sheinbaum – who took office last month – will be best served by taking a page from the playbook of her mentor and predecessor, Andres Manuel Lopez Obrador. Lopez Obrador found a way to work with Trump during his first term, delivering greater enforcement on migration and steering relations clear of the U.S. economic policy options that would have been most damaging to Mexico.

“Sheinbaum could say ‘Okay, Mexico can take (deported) Mexican nationals back, but you won’t impose the tariffs,'” Campero added.

Mexico could also lean on U.S. companies, many of which benefit significantly from the North American USMCA trade pact, to lobby against major tariff increases. The current USMCA was negotiated under Trump and ended up far less damaging for Mexico than Mexican officials had initially feared.

USMCA is up for review in 2026, and those discussions are set to be a key moment in the Sheinbaum-Trump relationship. Mexico will likely start preparing right away with “a better defined and more aggressive strategy” to identify politicians who could be good at communicating with Trump, said Antonio Ocaranza, who was spokesman under former President Ernesto Zedillo.

Sheinbaum’s appointment of Economy Minister Marcelo Ebrard – a former foreign relations chief under Lopez Obrador who has personal experience dealing with Trump – was seen as a powerful signal that Mexico is readying itself with its best political firepower for the USMCA review, analysts said.

Another area of potential tension is China.

Despite U.S. pressure, Mexico has let Chinese companies expand their presence in recent years and is considering an incentive program open to companies from any country interested in investing in Mexico.

Trump, meanwhile, has pledged a 60% tariff on Chinese goods and at least a 10% levy on all other imports.

Mexico’s incentive program to attract investment- which does not exclude China – could set it on a collision course with the Trump administration.

“This is not good news in the sense of what is coming up for the bilateral relationship,” said Lila Abed, director of the Washington-based Wilson Center’s Mexico Institute, adding that Mexico’s dealings with China could be a major sticking point in the USMCA review.

When it comes to drugs and security, Mexico will also be expecting a rough ride.

Sheinbaum’s administration is acutely aware that curbing the flow of fentanyl, the deadly synthetic opioid killing tens of thousands of Americans a year, will be high on the agenda between the two leaders, analysts said. Sheinbaum will need to be prepared to cooperate, and show results, in order to gain the political capital needed to avert Trump’s more radical ideas – such as U.S. military intervention against Mexican cartels.

Any such incursion would risk huge damage to relations between the interdependent economies but cannot be ignored, according to Abed.

“I think it’s a real option that’s on the table,” she said. (Reuters)

MuniGuate
Cervecería Centroamericana S.A.
MITM Events
INTERFER
Realidad Turística
Agexport
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
Herbalife
AVA Resorts
Nestle
Walmart
Cubasol
INOR
Servicios Médicos Cubanos
Intecap
Los Portales
Grupo Hotelero Islazul
Barceló Solymar
Instituto Hondureño de Turismo
Cuba Energy Summit
MAD-HAV Enjoy Travel Group
CUN-HAV Enjoy Travel Group
blackanddecker
INTERFER
Intecap
Revista Colombiana de Turismo Passport
Barcelo Guatemala City
Hotel Barcelo Solymar
Maggi - GLUTEN-FREE
Blue Diamond Resorts
Cubacel
AirEuropa
MuniGuate
Havanatur
Henkel Latinoamerica
Hotel Holiday Inn Guatemala

Subscribe to our magazine

━ more like this

Pole Dancing in Israel: A New Dimension with BlueDance.co.il

In recent years, pole dancing has experienced a remarkable transformation, shifting from a misunderstood niche to a popular activity combining fitness, self-expression, and empowerment....

Costa Rica Changes COVID 19 Entry Requirements as Of August 1st 2021

There is a significant and welcome change to the entry requirements to Costa Rica. Good news for the vaccinated amongst you. The change is effective...

A New Luxury Hotel Just Opened on An Idyllic Beach in Cancun, Mexico — And We Were the First to Stay

Waldorf Astoria Cancun opened to the public on Nov. 1, the brand's first new build in Mexico, with two waterfront pools and a fantastic...

COVID-19 Cases Worsen in Latin America, No End in Sight – Health Agency

Cases of COVID-19 may be declining in North America but in most of Latin America and the Caribbean the end to the coronavirus pandemic...

Cancun Travel Restrictions: Things Tourists Should Know for 2021

Cancun Is Open Cancun remains one of the most attractive international travel destinations in 2021. The Mexican Caribbean hotspot reopened with enhanced health and safety...
Hotel Barcelo Solymar
AirEuropa
Havanatur
Hotel Holiday Inn Guatemala
Barcelo Guatemala City
Maggi - GLUTEN-FREE
INTERFER
Blue Diamond Resorts
Intecap
Revista Colombiana de Turismo Passport
Cubacel
Henkel Latinoamerica

LEAVE A REPLY

Please enter your comment!
Please enter your name here

MITM Events
Instituto Hondureño de Turismo
Realidad Turística
blackanddecker
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
INOR
Barceló Solymar
Walmart
Los Portales
MAD-HAV Enjoy Travel Group
Cubasol
Grupo Hotelero Islazul
Agexport
Servicios Médicos Cubanos
Cervecería Centroamericana S.A.
MuniGuate
AVA Resorts
Intecap
Cuba Energy Summit
Nestle
INTERFER
Herbalife