Yes, I believe that a Donald Trump presidency could affect our economy negatively due to bad relations with Mexico. Productive Mexico-American diplomacy is absolutely vital as Mexico is an important trade partner and economic ally for the United States. If Donald Trump is elected president of the United States this November, I fear his statements and attitudes regarding Mexico and people of Mexican-descent may have negative repercussions against the American economy.
Definitely, building walls against the Mexicans will surely affect the economy, because Mexico is main US trade partners : roughly 75% of Mexican exports go to its northern neighbor. Of these, the auto industry plays a key role. A disruption of commercial relations could affect this sector in particular. Within our ADR sample, Simec (NYSEMKT:SIM), the industrial company with strong sales in the auto industry, could be instantly affected if Trump begins to close his theoretical disadvantage against Hillary Clinton. And we known that the auto industry and Mexican manufacturing, could seriously be affected by a hypothetical Trump presidency. since auto exports account for around 30% of Mexican exports, any trade war could affect the manufacturing industries in both sides of the border, with major (negative) implications for Mexico and the bullish ETF (NYSEARCA:EWW). Thus, we will remain vigilant of what happens in the general election. Check why we like the Mexican economy's prospects
Yes, there could be negative impacts on our economy if Donald Trump is elected president. He has consistently spoken poorly of Mexico and has already had one failed meeting with the country's president. Why would Mexico want to continue trading goods with the United States if Trump belittles its people? The incentive would be lost.
Although it's likely that the economy will be SLIGHTLY damaged, Mexico needs the United States a lot more than the United States needs Mexico. They will continue trading with us if Trump somehow becomes president, although they will probably ratchet up the rhetoric a little bit. Mexico simply isn't large enough or important enough for us to bend over backwards for them, and they know this.