Potential Global Impact of Trump’s New Tariff Proposals

## From Salsa to Supply Chains

You know what’s hot besides a fresh tamale in East Harlem? Mexican industrial parks. Yes, across our southern border, they’re buzzing with brands that would make your average Madison Avenue exec swoon. Mexico told international companies: “Tired of the hoops and red tape of China? Want to be just a stone’s throw from the USA? Well, amigos, your answer’s here.”

In recent years, companies like Adidas, Samsung, and even Lego have set up shop in Mexico. Imagine that—a brick adventure in the land of tacos. Following the supply chain fiascoes of the pandemic and the political cold war between the USA and China, the rush to Mexico only intensified. And, why not? It’s affordable and part of a trade network that’s as sweet as a Manhattan cocktail.

## Chilling Tariff Dramas

Yet, here’s where our story gets as spicy as your favorite Brooklyn corner bodega. President Trump’s wizardry in 2025? A sudden 25% tariff on goods from Mexico and Canada’s sweet boutiques—plus a 10% kick on Canadian energy imports. It’s like dumping a bucket of iced sewage onto sizzling fajitas. Multinational conglomerates and mom-and-pop operations alike are scratching their heads, wondering if this is just a macroeconomic nightmare or the new norm.

Mary E. Lovely from the Peterson Institute asked the million-dollar question: “If you’re an investment officer, how do you decide where to pour the cash?” Indeed, the choice between Mexico and other bustling markets now spins like the wheel of fortune.

## The Canadian Comeback

While Mexico has had its share of limelight, let’s not toss Canada into the Hudson just yet. The Great White North isn’t just about maple syrup and apologetic hockey teams. Our neighbor’s been raking in investment, thanks to Honda, Toyota, and Volvo’s investment in electric vehicle and battery plants.

Not convinced yet? [Here’s the scoop](https://www.nytimes.com/2025/01/31/business/trump-tariffs-china-mexico-canada.html). Honda alone is dropping a cool $11 billion in Ontario. Maybe it’s Canada’s charm, or perhaps the global push for eco-friendly rides. New Yorkers might not drive much, but we know how the automotive game rolls.

## Tariff Tango and Trade Ties

Miss the days when trade talks weren’t tantamount to chess matches? Well, we did have a trade pact signed by none other than President Trump himself with Mexico and Canada in 2020. However, as fate would have it, he’s now crumpling that paper and starting anew with tariffs flickering like Times Square neon lights. Isn’t it ironic?

Companies, especially those eyeing the North American market, now face the age-old dilemma. The question isn’t just which hemisphere houses the cheapest labor, but who provides the most stability. Either way, New York’s businesses will adapt—you can bet your bottom dollar on that.