Mexico is on edge as the possibility of Donald Trump winning the US elections becomes more likely, causing widespread concern among Mexicans. Financial markets are not immune to this anxiety either, with the interbank dollar experiencing a significant drop in value. On Wednesday, it closed at 20.28 pesos per dollar, representing a loss of 25 cents from the previous day’s close.
Market specialists predict that if Trump were to win, the US currency could reach up to 20.50 pesos. The polls currently indicate a dead heat between the two candidates, with Trump holding a slight edge in betting markets such as BET365, where he is favored at 58% and Harris at 47.6%.
Mexico’s concerns stem from Trump’s more aggressive rhetoric during this campaign cycle, which has included threats to deport millions of migrants, impose crippling tariffs on Mexican exports (ranging from 100% to 1,000% on car manufacturing), and take a hardline stance on the border, including the construction of a wall.
He has also vowed to seize remittances sent by Mexicans living abroad, bomb drug cartels’ hideouts, and disregard international agreements. Trump’s campaign slogan remains “Make America Great Again,” which he first employed in 2016. While this could be seen as a rehashing of his previous campaign promises, the possibility that he might win again is very real.
Foreign Minister Juan Ramón de la Fuente has attempted to downplay concerns about Trump’s potential victory, but the anxiety among financial markets suggests otherwise. To better understand how Mexico would fare under another Trump presidency, we spoke with former Foreign Minister Claudia Ruiz Massieu, now a senator for Morena (MC).
In response, she stated: “Trump represents a type of populism that undermines democratic coexistence. If he wins, we can expect to see more of the same policies as during his first term, but with fewer checks on his power. His rhetoric has become even more radicalized since his last election, and he no longer has any expectations of being re-elected or having a limited time frame.”
Source: Excelsior
