What the $60B Trade Deficit With Mexico Means

The transcript discusses the meeting between Pena Nieto and Trump, focusing on the diplomatic and economic implications. It covers the US-Mexico trade deficit, highlighting the benefits and challenges. Carlos Slim's perspective on Trump is explored, showing both criticism and support. The impact of NAFTA on the Mexican economy and potential strategies for Mexico are also discussed.

What was the immediate consequence of the damage done to US-Mexico relations?

• Formation of a new trade agreement

• Increase in trade tariffs

• Cancellation of Pena Nieto's trip to Washington

• Strengthening of NAFTA

Why do economists argue that the $60 billion trade deficit with Mexico is not necessarily a problem?

• It indicates a loss of jobs in the US

• It means Mexico is dominating the US market

• It shows that the US is not competitive

• It reflects the US's ability to purchase desired goods at lower costs

What is Carlos Slim's stance on Donald Trump?

• He fully supports Trump's policies

• He has criticized Trump but also had a positive meeting with him

• He opposes Trump and refuses to engage with him

• He has not made any public statements about Trump

How has Trump's rhetoric affected Mexican politics according to an analyst?

• It has united Mexicans in a common cause

• It has led to economic instability

• It has divided Mexican politicians

• It has strengthened US-Mexico relations

What strategy can Mexico pursue in response to changes in NAFTA?

• Focus solely on domestic production

• Stop exporting to the US

• Strengthen bilateral ties with TPP partners

• Increase tariffs on US goods