Mexico Signals It Could Hit Back With Tariffs at U.S.
Published On Nov 12, 2024, 2:01 PM
The article discusses the potential for escalating trade tensions between the United States and Mexico, with Mexico's economy minister indicating that Mexico would impose retaliatory tariffs in response to threats of high tariffs from President-elect Donald Trump. Trump has proposed 25% tariffs on Mexican goods unless certain conditions, related to migration and drug trafficking, are met. The interdependence of the economies suggests that such tariffs could negatively impact both nations, particularly in sectors like automotive and agriculture.
Stock Forecasts
MOO
Negative
The rising tensions and potential for tariffs could negatively impact US companies heavily reliant on trade with Mexico, particularly in agriculture and manufacturing sectors that export goods to Mexico. This uncertainty may lead to reduced investor confidence, impacting stock prices in these areas.
EWW
Negative
Mexican stocks and exchange-traded funds could see downward pressure as retaliatory tariffs are announced, suggesting an overall negative sentiment for sectors linked with U.S. trade. Companies dependent on exports may experience decreased valuations.
Related News
Mexico economy
Oct 27, 2024, 8:35 PM
Claudia Sheinbaum inherits a buoyant manufacturing sector, but also a troubled state-owned oil firm.