There is some speculation that President Trump’s trade war with China could be a godsend to Mexico and other Latin American countries, because they could increase their own exports to the world’s two biggest markets. However, it’s more likely that a protracted trade war would hurt the region both economically and politically.
Granted, Mexico could increase its sales of electronic goods to the U.S. market, and Argentina could boost its exports of soybeans to China as a result of the escalating U.S.-China tariff war.
Some multinational companies, such as China’s Fuling Global Inc., which sells paper cups to U.S. restaurants, and GoPro, the sporting-camera firm, already have announced plans to move their factories to Mexico to avoid the threat of rising U.S. tariffs on Chinese goods.
