Making a Run for the Border
The Mexican peso’s exchange rate fell 13 percent to a record low of 20 pesos to one U.S. dollar on Nov. 9, 2016, one day after Donald Trump was elected president. The drop came amid concerns about the impact of a Trump presidency on the North American Free Trade Agreement (NAFTA), which Trump described during his campaign as the “worst trade deal in history.”
In addition to saying he wants to renegotiate trade terms, the president said before the election that he would consider a 35-percent tax on Mexican-made goods sold in the United States.
What actually happens with the new administration remains to be seen. And, while many involved in cross-border logistics say that the uncertainty has created problems, they believe NAFTA does need to be updated to reflect two decades of change.