Dealing with a bully is never easy. On the issue of tariffs, there is little doubt that the Trump administration has been acting like a bully to many countries around the world. That being said, I do think that they have brought up some valid concerns that need addressing on both tariff and non-tariff issues. Why is Mexico not cracking down harder on the cartels? Why is Mexico allowing so many migrants from Central and South America to pass through the country? Why is Mexico allowing large amounts of Chinese products into the country that clearly are destined for the United States? All good and fair questions being asked.
And it’s not just Mexico. Why does Canada have large tariffs on certain U.S. farm products? Why are India and European countries able to place much higher tariffs on certain products to protect their local industries while the United States mostly does not? Why does China protect many industries from foreign companies?
Trade imbalances do exist globally and a level playing field in many products and industries often does not exist. That is a valid and factual statement. However, making the argument that the United States “is getting ripped off” as a result is not one.
Let’s take Mexico as an example. The U.S. does buy much more from Mexico than Mexico does from the United States — a true statistic that Trump frequently highlights. But of course it does! The U.S. has nearly three times the population, an economy that is 15 times larger and much wealthier citizens. In addition, the United States has an exceptionally high percentage of the economy that is “consumer based” (in other words, Americans like to buy lots of stuff!).
Mexico has been hit with a variety of justifications for tariffs from the United States. Some are justified and logical — like a lack of action on cartels, drug production, Chinese transshipment and migrants. Others are illogical and make little sense — like pointing to the trade imbalance. I recently wrote about many of the key demands of the Trump administration of Mexico.
The Sheinbaum administration has been responding to many of these demands. To name a few:
1. Sheinbaum has embraced potential Mexican deportees, going so far as to create a program for them (Mexico Te Abraza, meaning Mexico Hugs You). The program has set up 10 welcome centers near the border and offers a (albeit small) initial stipend of 2,000 pesos for each deportee.
2. Sheinbaum has helped stem the flow of new migrants crossing the border. She has sent 10,000 Mexican troops to the border area in a show of commitment.
3. Sheinbaum has stepped up activity against the cartels. There have recently been more arrests of cartel members, more confiscations of drugs and more crackdowns on fentanyl labs. Overall activity is still low, but the trend is clearly positive.
4. Sheinbaum has cooperated with U.S. authorities on previously arrested cartel members by recently sending 29 of the highest ranking and most wanted ones to the U.S. for extradition.
5. Sheinbaum has taken some action on China. Going after Chinese residents illegally in the country, counterfeit Chinese goods, agreement to a U.S. review of new Chinese investment into Mexico in certain key industries, and offering to match U.S. tariffs on Chinese goods.
I recently wrote about what I think Sheinbaum should say directly to the American people to provide clarity on what Mexico has been doing on many of the demands.
Regarding tariffs specifically, what stands out most is what the Sheinbaum administration hasn’t done, rather than what it has done. Many weeks into Trump tariff threats, Sheinbaum still has yet to respond with any reciprocal tariffs. The administration has instead focused on an “educational campaign” explaining how painful tariffs would be to both countries and why they should be avoided. The administration also sent high ranking members to Washington, D.C., and other parts of the country several times over the past few weeks to help communicate Mexico’s message.
There have as of yet been no tariffs announced by Mexico, no threats made, no escalations and no drama. Mexico has been calm, steady, and patient — a strategy that so far seems to be working. Trump publicly has had nothing but positive things to say about Sheinbaum (unlike his comments of many other world leaders) and the administration continues to defer most tariffs on Mexico and seems to be changing the tariff narrative to focus on other countries.
I personally think, given the difficulty in facing a much larger and unpredictable bully, that Sheinbaum has thus far handled Trump and the tariff issue exceptionally well. She has demonstrated progress in areas important to the United States while at the same time showing a firm resolve on issues important to the Mexican people (like national sovereignty and the issue of guns from the U.S. coming into Mexico). Mexicans have rallied around their president, with recent polls showing an approval rating as high as 85%. Financial markets seem impressed as well, with the Mexican peso just last week hitting stronger levels than before Trump was elected. No one predicted that.
The world is a very uncertain place right now. Sheinbaum has quickly and quietly demonstrated herself to be a voice of calm and reason. Let’s hope the Trump administration recognizes and rewards this by changing the dialogue with Mexico to be more constructive and positive. The focus instead should be on how to make the U.S.-Mexico partnership stronger and more integrated than ever. Let the bullying be focused elsewhere.
Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for nearly 30 years.
