Street Signals The Other Side in the Trade War
7 snips
Feb 27, 2025 Ning Sun, a Senior Emerging Market Strategist at State Street Global Markets, delves into the often-ignored impacts of trade wars on developing economies. He discusses how U.S. tariffs could reshape Mexico's economy and the fears of foreign direct investment decline. The conversation includes the potential dangers for U.S. companies in Mexico and the semiconductor sector's vulnerability. Sun also highlights the geopolitical repercussions for Asian economies and the shifting dynamics in global partnerships, emphasizing the need for strategic foresight.
AI Snips
Chapters
Books
Transcript
Episode notes
Trade War Coverage vs. Market Impact
- Media coverage of trade wars is high, but its impact on markets is low.
- Other factors currently influence markets more significantly.
Likelihood of Tariffs on Mexico
- The March 4th deadline for tariffs on Mexico and Canada is approaching.
- Ning Sun believes the likelihood of tariffs being implemented is quite low.
Impact of Tariffs on Mexico
- Tariffs on Mexico could severely damage its economy in the medium term.
- The Mexican central bank might devalue the currency to offset the impact, but FDI would likely decrease.
