Mexico has been one of the beneficiaries in the ongoing U.S.-China trade war, but American President Donald Trump’s recent threats to impose a new tariff on the country could change its fortune, said the chief economist of the World Trade Organization.
Tensions between the U.S. and China have resulted in the two countries importing fewer goods from each other, especially products subjected to increased tariffs, Nomura said in a report this week. As a result, importers in the U.S. and China have been sourcing for those goods from countries such as Mexico and Vietnam, said the Japanese bank.
But the benefits to the Mexican economy will be weighed down if Trump carries out his threat to slap additional tariffs on all American imports from Mexico, Robert Koopman, the chief economist at the World trade Organization, said on Thursday.
[To read the original article, click here.]