Trump’s New Tariff Isn’t About Trade

It’s about Latin America’s politics—and Mexico should be paying close attention.

Source: Substack IA

Last week, Donald Trump announced that starting in August, imports from a range of countries will face a tariff of up to 50%, including a 30% tariff on Mexican goods.

Financial markets barely blinked. Most analysts dismissed it as another empty threat. One more tantrum in Trump’s long history of bluster that fizzles before it bites.

Yet, they may be missing the point.

What Trump announced wasn’t just another policy in trade. It was something more dangerous: a political message. One that signals a shift in how he intends to use American economic power abroad, particularly in Latin America.

And this message should send alarm bells ringing in Mexico, especially after what he said about Brazil.