US President Donald Trump is faithful to his tough stance on Mexico. He threatens to withdraw from the North American Free Trade Agreement (NAFTA), involving the US, Canada, and Mexico. He dares to make sharp remarks on the US trade and economic partners. He has already set in motion his plans to build an "impenetrable, physical, tall, powerful, beautiful, southern border wall" between the US and Mexico. Even a disaster does not soften his rhetoric on Mexico.
Recently, most of Trump’s comments in social networks are devoted to Hurricane Hervey. Nevertheless, the US President does not forget to ramp up pressure on Mexico. Donald Trump said he is eager to terminate NAFTA and renegotiate a fair trade deal with Mexico and Canada from his viewpoint. Experts note that Trump will not be legally allowed to leave NAFTA without the approval of Congress. Starting from his election campaign, Trump has highlighted elevated criminal rates in Mexico and reiterated the need to build the wall at the Mexican border. Moreover, President Trump has always insisted that Mexico will pay the expenses. Mexican President Enrique Pena Nieto has always patiently replied he will not. How would the money be recouped from Mexico? Donald Trump suggests a number of options such as raising tariffs on imports, a punitive tax on the Mexicans living illegally in the US, increasing visa costs and border crossing fees.
The Mexican peso has been vulnerable to Trump’s daily threats since the fierce presidential race in the US. The Mexican currency has been in a tailspin for long and even plummeted to record lows against the US dollar in January 2017. Experts do not see weighty reasons for the peso’s growth in the short term.
