The peso currency suffered its biggest fall in 22 years on fears Trump will stick to a campaign pledge to rewrite or dump a free trade treaty he says is loaded in Mexico’s favor. Investors worry a trade fight could tip Mexico’s economy into recession.
The Republican candidate has threatened to deport millions of undocumented Mexican migrants, many of whom he described as rapists and drug runners, and to keep others out by building a massive border wall he says Mexico will pay for.
Watching in homes and bars around the country as the New York real estate tycoon extended his lead over Democrat Hillary Clinton in one U.S. state after another, many Mexicans were gripped by disbelief and fear.
“We have to start saving for that wall,” said Rafael Garnica, a 29-year-old Mexico City technology entrepreneur. “It’s not just Trump that frightens me, it’s that he represents a huge amount of people in the United States.”
On Twitter, some Mexicans urged their government to seek dialogue with Trump, while others said they feared a rupture of ties with the United States.
“Trump’s victory is the antithesis of the fall of the Berlin Wall,” tweeted Fernando Belaunzaran, a politician for the center-left Party of the Democratic Revolution.
Trump’s victory coincided with the anniversary of the 1989 fall of the Berlin Wall.
Trump has proposed blocking billions of dollars in remittances sent home by Mexicans working in the United States to make Mexico pay for his border wall.
Pena Nieto, who likened Trump’s rhetoric to that of Adolf Hitler and Benito Mussolini, has dismissed the idea out of hand and his foreign minister reiterated on Wednesday the country had no intention of paying.
On the campaign trail, Trump relentlessly attacked the North American Free Trade Agreement (NAFTA) between Mexico, Canada and the United States as the “worst deal ever”, vowing to scrap it if he cannot renegotiate it.
NAFTA has been a cornerstone of Mexican economic policy since it took effect in 1994.
Finance Minister Jose Antonio Meade said in a news conference on Wednesday that uncertainty and volatility had increased since Trump’s win, but that there was no immediate impact on trade rules between the two countries.
Some business leaders say the U.S and Mexican economies are now so closely integrated it is impossible to take steps against one without damaging the other.
“We will be facing months of volatility and uncertainty while the new government in Washington takes office and we see whether Mr. Trump is able to make good on his unfortunate campaign promises and rhetoric,” said Andres Rozental, a former Mexican deputy foreign minister.
Mexican officials hope to diversify export markets to try to reduce the country’s dependence on U.S. consumers, and Pena Nieto has said he would work with the winner of the election.
He was pilloried at home for inviting Trump to Mexico in late August in an effort to create some leverage for his government in case the businessman won.
Trump softened his tone on the brief stopover he made to meet Pena Nieto, telling a news conference it was important to keep manufacturing in North America and describing Mexican-Americans as “spectacular, hard-working people.”
But within hours of his departure, he and Pena Nieto got into a Twitter feud over who would pay for the wall.
After Trump’s victory, Pena Nieto said on Twitter he was ready to work with him, calling the neighboring countries friends who “should continue to work together for the competitiveness and development of North America”.
Under NAFTA, four out of every five dollars made by Mexican exporters has come from the United States, and bilateral trade is now worth about half a trillion dollars annually.
Trump has threatened to levy tariffs of up to 35 percent on Mexican-made goods, sparking fears of a massive hit to trade, especially in Mexico’s northern border regions.
The U.S. president has the power to rescind NAFTA but policymakers on both sides of the border consulted by Reuters said Trump would come under heavy pressure from Congress and business leaders not to wreck trade.
Some Mexicans whose livelihoods are linked to the trade ties between the two countries also expressed hope that Trump’s bark would be worse than his bite.
“We’ll have to see, because there’s no certainty that he’s going to do everything that his campaign has been saying,” said Jonathan Bolaños, night receptionist at the Hotel Fiesta Inn, based in an industrial park in the border city of Nogales. “It’s true he was very aggressive, very tough, but sometimes people have to act that way to reach positions requiring charisma.”
Still, Mexican officials say Trump’s hard line on trade blurs with his radical stance on immigration.
“Trump’s wall isn’t just a message to Mexico about migrants. It’s about imports too,” said a senior Mexican government security official, speaking on condition of anonymity.
Friction over trade could put bilateral cooperation over security, the fight against drug trafficking and curbing illegal migration under strain, which U.S. and Mexican officials say has improved steadily under Pena Nieto and President Barack Obama.
Mexico’s ambassador to Washington, Carlos Sada, said at an event in Los Angeles last month that Trump had dealt a blow to the United States’ image south of the border and stirred up historic resentment.
Alongside him, the U.S. ambassador to Mexico, Roberta Jacobson, joked about how Trump’s campaign had also made life difficult for U.S. diplomats south of the border.
“I thought about just hiding until November 9th,” she said. “The overwhelming, universal reaction to the Trump visit itself, and even to a lot in the election campaign, has been ‘What the … fff … you know?'”
“But the more concerning response, the much deeper response has been: ‘We’re afraid it won’t go back to normal after this.'”
(Additional reporting by Natalie Schachar, David Alire Garcia and Joanna Bernstein; Editing by Kieran Murray and W Simon)
Trending News on PVDN
- The Connection Between the Jalisco Cartel, Missing Employees at Call Center, 45 Bags of Body Parts, Timeshare Scams, and American Tourists PUERTO VALLARTA (PVDN) - More than a week after the initial disappearance of eight young workers at a call center in Zapopan, Jalisco, the case continues to be shrouded in mystery, leaving families distraught and demanding answers. The Jalisco Prosecutor's Office has made little progress in the investigation, according to the relatives of the missing…
- Shocking Case of Animal Abuse in Mexico: Man Throws Dog into Boiling Fry Oil PUERTO VALLARTA (PVDN) - A disturbing incident of animal abuse has sent shockwaves throughout Mexico, as a man allegedly threw a dog into a pot of boiling oil, resulting in the animal's tragic death. Authorities have detained the suspect for the assault on the dog and have issued an additional arrest warrant on charges of…
- Thrill-Seeking Tourist in Puerto Vallarta is Rescued After Parachute Accident on Los Muertos Beach Puerto Vallarta (PVDN) - A woman was rescued after her parachute got entangled in a palm tree on the popular Los Muertos Beach in an incident that highlighted a growing concern over the lack of regulation in tourist activities in Puerto Vallarta. The incident unfolded during one of the city's burgeoning recreational pursuits frequently indulged…
- Popocatépetl Volcano Activity Continues; June 5, 2023 Monitoring Update PUERTO VALLARTA (PVDN) - In the latest updates from the monitoring systems of the Popocatépetl volcano, 108 exhalations were recorded in the last 24 hours, accompanied by water vapor, volcanic gases, and minor quantities of ash. The monitoring systems also registered 51 minutes of tremor segments, ranging from low to moderate amplitude and high frequency.…
- It’s Getting a Little More Expensive for Americans Living in Mexico, Peso Surges to Over Seven-Year High Puerto Vallarta (PVDN) - The Mexican peso reached its highest level in more than seven years on Friday, June 2, driven by positive employment data from the United States. The country's stock market also experienced a notable rise as fears of a recession in the US diminished. At the close of trading, the peso was…
- Buried Body Found Near Home of Man Who Went Missing at Puerto Vallarta Pride PUERTO VALLARTA - This Monday morning, a gruesome discovery of a half-buried body was made on a property located adjacent to the home of Ruben Michel, a young man who has been missing since May 25. Michel, a deaf-mute member of the LGBTQ+ community, vanished following the Vallarta Pride event. Municipal Police were alerted to…
- Volaris Maintains Regular Operations in Puerto Vallarta Despite Strike Threat PUERTO VALLARTA - Amid threats of a work stoppage by Volaris employees early this Monday, operations at the Puerto Vallarta International Airport have continued as usual, as reported by the Grupo Aeroportuario del Pacífico (GAP). According to official statements from the airline, as of 9:00 a.m. on Monday, June 5, Volaris has operated 77 flights…
- Popocatépetl Volcano Exhibits Increased Activity; Yellow Phase 3 Alert Continues PUERTO VALLARTA (PVDN) - In the past 24 hours, heightened activity was recorded from Mexico's Popocatépetl volcano, with an alarming 315 exhalations detected, accompanied by water vapor, other volcanic gases, and ash, according to the Scientific Advisory Committee (CCA) of the National Civil Protection System (SINAPROC). Monitoring systems in place around the active stratovolcano also…
- Puerto Vallarta Celebrates 105 Years as Municipality, 55 as City with Grand Anniversary Celebration PUERTO VALLARTA (PVDN) - Puerto Vallarta, one of the nation's favorite tourist destinations, celebrated the 105th anniversary of its elevation to a municipality and its 55th year as a city with a solemn session held in the central courtyard of the city's presidency. Presiding over the commemorative event was Mayor, Professor Luis Alberto Michel Rodríguez,…
- Mother Pleads for Expedited Investigation into Disappearance of Son Following Vallarta Pride Celebration PUERTO VALLARTA (PVDN) – One week after the disappearance of 32-year-old Michel Rubén Castro Guizar, who attended the Vallarta Pride celebration in Puerto Vallarta, his mother Bacilia Guizar pleads with authorities to accelerate the investigation and search efforts. In an emotional press conference outside her house at 114 March 18th Street, October 12th neighborhood, Guizar…