A Winnamin Overdose – Mexico Threatens to Retaliate Against Trump Border Security Tariffs
Other than Trump winning the election, this is the best news all year. Mexico is threatening to retaliate against Trump’s border security tariffs, with some form of economic punishment. Pinch me, this is too awesome.
Keep in mind that around 35% of Mexico’s GDP is contingent upon exports to the USA, meanwhile only around 1% of our stuff exports to them. Then add in the remittances of dollars to Mexico, and more than 50% of the Mexican economy is contingent upon us just being friendly to their needs.
Mexican President Claudia Sheinbaum has no clue or comprehension about the scale of Trump’s leverage over her. This is like a spoiled teenager threatening to cut up the credit card dad gave her if she can’t go to the concert. Beyond funny.
WASHINGTON DC – Mexican President Claudia Sheinbaum said her government would retaliate if President-elect Donald Trump moves forward with his threat to impose a 25 percent tariff on the country, warning of severe economic consequences for companies operating in both countries.
Sheinbaum unveiled the letter during her daily press conference in Mexico City, which responded to Trump’s plan to slap 25 percent tariffs on all goods from Mexico and Canada in an effort to crack down on the flow of migrants and illegal drugs into the United States. Trump also pledged an additional 10 percent tariff on China.
“For every tariff, there will be a response in kind,” Sheinbaum wrote in a letter sent to Trump. The text was released by the Mexican Embassy Tuesday morning, which said the economic fallout of a trade war would harm shared enterprises, particularly automotive companies that operate in both countries.
“Among Mexico’s main exporters to the United States are General Motors, Stellantis, and Ford Motor Company, which arrived in Mexico 80 years ago. Why impose a tariff that would jeopardize them? Such a measure would be unacceptable and would lead to inflation and job losses in both the United States and Mexico,” she added, according to a translated version of the letter provided by the Mexican Embassy.
The Mexican automotive industry is particularly exposed to a heightened trade conflict with Washington. Trump has repeatedly complained about auto imports from Mexico, accusing the country of being a back door for China, and floated 200 percent tariffs or higher on vehicles from south of the border.
Sheinbaum said she hopes her team can meet with members of the Trump administration to “continue building joint solutions.” (read more)
This is just too cool. If we are lucky, I mean really lucky, Mexico will block all trade and economic relations with the USA. That would be awesome for us.
Can you imagine how the multinational corporations are looking at this? They have funneled hundreds of billions in investments into Mexico, solely for the purpose of having access to the USA market. Sheinbaum can make all those investments disappear overnight and simultaneously collapse her government.
If Mexico blocked trade with the USA, Florida farmers would be instant bazillionaires and the value of Florida farmland would quadruple overnight. There is absolutely NO DOWNSIDE to a permanent, fixed infrastructure border wall and enforcement that blocks all migrants from entry and bottlenecks them inside Mexico.
Mexico exists because we let them exist. Mexico is wealthy because we give them dollars.
Cessation of all economic relations with Mexico would be extremely awesome for us. The only geopolitical downside would be the possibility of Russian or Chinese military bases in Mexico in a few years because Mexico would become impoverished and dirt cheap within weeks. Sheinbaum has no concept of the leverage in this dynamic.
I shall put down my winnamins, and pray she follows through with her threats. The Mexican peso has already dropped 30% this year. lol
OMG, can you imagine what the conversations are amid German automakers right now.
I’ll shut up.
This is too much fun, and he’s not even in office yet.
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