Trump is leading the US down Mexico’s troubled path
Mexico's Democracy The Mexico Brief. Mexico's Democracy The Mexico Brief.
Preview

Trump is leading the US down Mexico’s troubled path

by Eduardo García.

 

When I met my American father-in-law nearly 40 years ago, we often ended our long discussions about Mexico’s political and economic troubles with a phrase that seemed to explain it all: malos gobiernos — bad governments.

If Larry Malkin, a fellow journalist, were still alive — he sadly passed away three years ago — we might still conclude our conversations after all these years with that same phrase. But oddly enough, it would no longer apply just to Mexico, but to his country too.

Over the past two and a half decades, Americans have endured a series of poor governments that seem to have eroded the nation’s moral compass, steering it toward decline — a trajectory Mexico has been on for decades on end.  

Read More
The overlooked impact of Trump’s auto tariffs
Mexico's Economy The Mexico Brief. Mexico's Economy The Mexico Brief.
Preview

The overlooked impact of Trump’s auto tariffs

by Luis Lozano.

Donald Trump is obsessed with imposing tariffs to vehicles made outside the United States, but I do not think he has a clear objective for it other than the protection of American jobs. Let’s assume that works. The issue here is if saving American manufacturing jobs will make American cars more appealing to the global markets. Put a different way: will reviving American automotive manufacturing guarantee that the US keeps up with technological changes being led by Asian brands? Unlikely…

The most important thing that the North American automotive business has experimented with in the last 40 years has been NAFTA. NAFTA created an environment of competitiveness that the US had lost with Lyndon B Johnson’s tariffs. Those tariffs disconnected the industry from other markets and needs, ironically hurting the competitiveness of the American brands. They resulted in the United States losing its ability to lead an industry which it invented for the world. It is impressive to see that the US government making the same mistakes today.

Read More
Trump & Sheinbaum find it takes two to tango in the delicate USMCA dance
Mexico's Politics The Mexico Brief. Mexico's Politics The Mexico Brief.

Trump & Sheinbaum find it takes two to tango in the delicate USMCA dance

by Gerónimo Gutiérrez.

Since the start of the second Trump administration this January, relations between Mexico and the United States have been active, tense, volatile but overall polite. Despite the US administrations’ tough talk on immigration and trade - including the imposition of some tariffs as in the case of steel and aluminum - and the fact that American unilateral military action in Mexican territory against the cartels still remains a possibility, Mr. Trump has maintained a somewhat restrained demeanor with his Mexican counterpart, President Claudia Sheinbaum.

After a telephone call on March 6, both leaders agreed for a second time to a truce on trade tariffs until April 2 for goods imported to the US under the United States, Mexico and Canada Agreement (USMCA). More notable perhaps, Mr. Trump emphasized his respect for Ms. Sheinbaum and noted that relations are moving along albeit the difficult context. The tone certainly contrasts with that used by the US president with Canada, his other North American partner. As of now, Trump still asserts that Canada should become the 51st state, a notion that not only infuriates Canadians but baffles many Americans.  

Read More