The Peter Zeihan Podcast Series Mexico Horses Around with Tariffs || Peter Zeihan
Dec 22, 2025
Mexico is introducing a hefty 50% tariff on imports from countries without trade agreements, positioning the U.S. for economic advantage. This shift underlines Mexico's consumption-driven economy and its strategic significance. The new policy is set to weaken China and Korea while boosting U.S.-Mexico ties, reflecting a win for the Trump administration’s goals. Furthermore, ongoing NAFTA discussions hint at minimal changes in U.S.-Mexico relations, securing a long-term partnership. Tune in for insights on global economic dynamics!
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Opening With Biscuit In Arizona
- Peter Zeihan starts the episode from Arizona and introduces his dog Biscuit.
- He jokes about Biscuit chewing phones and hands while setting up the topic on Mexico's tariff move.
Why Mexico-U.S. Consumption Matters
- Mexico and the U.S. are the world's major consumption-led economies capable of sustaining industrial bases.
- Aligning them into a trading block preserves viable industrial production amid global demographic decline.
Tariff Shift Favors The U.S.
- Mexico's new 50% tariff targets imports from non-FTA countries, privileging U.S. trade access.
- This shift constrains competitors like China and Korea while cementing U.S.-Mexico economic integration.