In just four days, Donald Trump goes from PEOTUS to POTUS. Latin America is not impressed. They’ll get over it.
While most of the knee-jerk reactions of fear and loathing have subsided south of the Rio Grande, Trump is widely seen as a negative by those who live there. The only country really in Trump’s crosshairs is Mexico. And even with that hanging over them, the World Bank is forecasting Mexico’s economy to rise over the next three years so long as the U.S. economy gets a boost from Trump’s corporate tax cuts and other fiscal stimulus measures.
Nevertheless, Mexico will face the brunt of Trump’s wrath. The country is dependent on the U.S. not only for duty free exports, but also for the billions of dollars in remittances it receives from Mexican citizens working in the U.S. Remittances are one of the largest sources of foreign capital coming into the country. Trump has threatened to tax those payments if Mexico doesn’t play ball on trade and immigration. The new sheriff of Washington holds all the cards when it comes to Mexico.