Mexico Outsmarts Trump in the Trade Game
Trump lifted Manny of the tariffs he imposed—but left China and Mexico on the hot seat. Still, Mexico came out ahead.
Despite tensioners over drug cartels and fentanyl, Mexico is now stronger on trade. Under leader Claudia Sheinbaum, the country is standing firm. She’s not only avoiding new U.S. tariffs—she’s hitting back with some of her own.
Mexico’s bold moves are giving it more leverage over the U.S. car industry. especially as factories shift south of the border.
U.S. Military Deployed to Southern Border: A Drastic Move
To stop illegal immigration, Trump has ordered the military to control parts of the U.S.–Mexico border. This includes the Roosevelt Reserve, a 60-foot-wide strip across three states.
Under the plan:
- Troops can detain people crossing illegally
- New walls and surveillance systems will be built
- The Defense Secretary will review the mission after 45 days
This move is part of a larger strategy to crack down on immigration—and possibly to bypass laws like the Posse Comitatus Act.
But the facts tell a different story:
90% of fentanyl smuggling is done by U.S. citizens, not illegal immigrants.
Trump’s Trade Trouble with Europe Heats Up
While Trump criticizes Europe for unfair trade, the EU is striking back.
The U.S. allows tons of European cars, but EU rules block American goods like beef and vehicles. Trump is threatening new tariffs unless that changes.
But Europe is already firing back:
- Tesla lost major ground in electric car markets across Europe
- In Norway, Tesla’s market share dropped from 21.7% to 7.4%
- Unions and labor rights issues are hurting Tesla’s reputation
European buyers are turning away from Tesla, and U.S.–EU relations are cooling fast.
Canada Breaks from the U.S. on Trade and Defense
Even America’s closest ally is changing course.
Canada is now:
- Buying European fighter jets
- Investing in EU clean energy and tech
- Reducing exports to the U.S.
Since 2017, Canada–EU trade has increased 60%. Canada is signaling that it no longer wants to rely so heavily on its southern neighbor.
Japan Fights Back: The Auto Trade War Begins
Trump slapped 25% tariffs on Japanese car parts, especially those used in electric vehicles.
The result?
- Japanese auto sales in the U.S. dropped 7%
- Ford and GM gained market share
- Japan sold $30 billion in U.S. government bonds, weakening the dollar
Now Japan is moving its factories out of the U.S., focusing on Mexico and Southeast Asia instead.
What Happens Next? Japan Has More Ammo
Japan might:
- Cut exports of solid-state batteries—tech the U.S. needs
- Add tariffs to U.S. goods like electronics and food
- Boost EV production in Europe, where demand is growing
This could hit U.S. carmakers hard—and deepen the trade war.
Trump’s Final Target? European Wine and Champagne
Trump now threatens 200% tariffs on European alcohol, especially French wine and champagne.
In 2023, the EU sold $13.1 billion in spirits to the U.S. That could drop fast if tariffs double the price.
The EU says it will protect its wine industry—and might strike back if Trump follows through.
Final Thoughts: Is America Losing Its Trade War?
Trump’s trade strategies were supposed to help U.S. industries. But instead, they’ve led to:
- Retaliation from global allies
- Declining U.S. influence in auto and tech
- Closer ties between Europe, Japan, Mexico, and Canada
What started as a bold trade plan is now a risky game—with America’s economy on the line.
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