Dear friends and colleagues:
Chinese exports to Mexico are rising rapidly. I argue in my latest Bloomberg column, “Mexico Is Facing a Second — and Worse — ‘China Shock’,” this is causing not just geopolitical heartburn for a country caught between two superpowers but also threatens Mexico’s future economic prosperity. The solution is deeper North American integration.
I also took a look, along with Julia Huesa and Gabriela Paz-Soldan, at the growing number of so-called Section 232 national security investigations by the Trump administration. From copper to pharmaceuticals, these nine graphics lay out how important imports are for each economic sector, how concentrated sales are, and where they come from, distinguishing between friend and adversary.
Finally, last week I joined nine of my CFR colleagues to reflect on Trump’s tariffs and what they mean so far for U.S. manufacturing, deficits, financial markets, and more. You can read the pieces here.
As always, thanks for reading.
Sincerely,
