Growing wave of uncertainty is freezing investment plans in Mexico, rattling business leaders in the US and abroad
A growing wave of uncertainty is freezing investment plans in Mexico, the US’s largest trading partner, rattling domestic and foreign business leaders alike.
Investors are weighing Donald Trump’s decision to impose tariffs on 1 August. The plan so far – levies on Mexican-made cars, steel, aluminum, metal parts and tomatoes. And they are pondering the push by the Mexican president, Claudia Sheinbaum, to overhaul the country’s judiciary in ways critics say undermine legal certainty and could roll back democratic gains.
No wonder they are increasingly unsure how to proceed. Plans to launch new operations in Mexico – or expand existing ones – are being reconsidered, postponed or quietly shelved.
The economic effects increasingly rattle trade and investment decisions all along the US-Mexico border, gnawing at executives’ confidence and potential job growth. Long-term planning proves all but impossible, say business leaders and economic experts.
