Mexico hopes to stave off Trump tariffs

This podcast interviews Luis de la Calle, a leading Mexican trade economist, about the potential impact of Donald Trump's threatened tariffs on Mexico. The discussion covers Trump's past tariff actions, their impact on the Mexican economy (particularly the significant reliance on US exports, representing 32% of Mexico's GDP), and the complexities of disentangling trade issues from concerns about migration and fentanyl. De la Calle argues that while Trump's actions create short-term uncertainty, the deep economic interdependence between the US and Mexico makes a complete breakdown of trade relations unlikely in the long run. He highlights the high correlation (90%) between US and Mexican manufacturing employment as evidence of this interdependence.