During his next term as U.S. president, Donald Trump will increase pressure on Mexico to curb immigration and drug trafficking, while threatening tariffs and generating uncertainty surrounding the U.S.-Mexico-Canada Agreement, which will harm Mexico's investment attractiveness, even if the country ultimately remains an attractive manufacturing destination. In overnight trading on Nov. 5-6, as it became clear that Trump would win the U.S. presidential election, the value of Mexican currency fell by 3.5% to 20.81 pesos to the U.S. dollar, its lowest since mid-2022. The peso has since recovered, but the drop likely reflected investors' concerns over how a second Trump term could impact Mexico's economy, given Trump's repeated campaign pledges to impose steep tariffs on Mexican goods. On Nov. 4, the day before the U.S. election, Trump said the first international call he would make as president would be to Mexican President Claudia Sheinbaum; in particular, he said he would...
