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Mexico: Claudia Sheinbaum faces economic challenges

21 0
01.10.2024

As Mexico's first female president, Claudia Sheinbaum, begins her term in office on October 1, dark clouds are looming on the northern horizon of the Central American country. US Republican presidential hopeful Donald Trump has again plunged Mexico's economic model of low-cost production for the US market into doubt by calling on companies there to immediately relocate their operations to the United States or face higher tariffs.

Speaking to party members at the Republican National Convention in July, he warned Chinese electric vehicle manufacturers in Mexico that their EVs would become unaffordable due to new duties of 100% he was planning to impose on their imports.

Trump has also called on German automakers, which operate big plants in Mexico, to "become American car companies."

"I want them to build their plants here," Trump said during a campaign speech in Savannah, Georgia, on September 24, as he promised them a reduced corporate tax rate of 15%.

Although sworn in on Tuesday, 62-year-old Claudia Sheinbaum's presidential agenda will only become clear after November 5, when a new US president is elected. Whether it's going to be Donald Trump or Kamala Harris from the Democratic Party, the outcome of the US election is sure to have a major impact on the Mexican........

© Deutsche Welle


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