Mexican President Claudia Sheinbaum told the Associated Press this week that “Mexico must be respected, especially by its trading partners”.
Ouch!
Mexico already has better trade relations with the EU than the US does. The big guns of South America have just concluded a free trade agreement with the EU. Mexico may decide the EU would be a better partner than the US.
Well. Seems I was behind the curve. Mexico has had a free trade agreement with the EU, covering manufactured goods, since 2000. That agreement was replaced by a new one that added ag products, in 2018. Now, virtually all trade between the EU and Mexico is tariff-free.
Superfluous
The US, Mexico, the UK, and Japan are the demand-side economies. We are gaining economies of scale. The globe will depend on us exporting a deflationary force.
The rest of the world is either into financing out of Central Europe or simply getting relatively poorer. That includes China is about to get relatively much poorer. TFG is about to strip the trade balance surplus off of China.