FxWirePro: Daily Commodity Tracker - 21st March, 2022 
In the second half of 2019, the Trump administration is likely to intensify pressure on Mexico to curb the amount of drugs coming to the United States via the southern border with Mexico. We have already warned our readers that U.S. policy towards Mexico remains somewhat hostile as a response to years of alleged abuse, and how the tariff cloud would hang over Mexico in years to come.
- President Trump cleared that if the millions of asylum seekers from Central America continue to march through Mexico without being apprehended and reaches the southern border of the United States, he would first put a penalty on cars coming to the United States from Mexico.
- He hinted that Mexico needs to ratify the newly reached agreement, known as the ‘U.S.M.C.A.’, he would move ahead with the tariffs.
- Even if Mexico chooses to live with the agreement, the tariff clouds would still remain as he announces a one-year ultimatum that if Mexico doesn’t reduce the amount of drug coming through Mexico to the United States, through the southern border, he would tariff the cars.
- And, in worst case, the border would be closed in case the migrant caravan reaches the U.S. border.
From President Trump own words, it is clear that Mexico has no options but either to act or bear with the tariffs. After the warning, Mexico has significantly stepped up efforts on issues raised by the president.
His latest tweet clears why the pressure would intensify unless Mexico finds a way to deal with drug cartel issue, which has plagued the country for decades, “The Coyotes and Drug Cartels are in total control of the Mexico side of the Southern Border. They have labs nearby where they make drugs to sell into the U.S. Mexico, one of the most dangerous country’s in the world, must eradicate this problem now. Also, stop the MARCH to U.S.”
We expect the Trump administration to significantly ratchet up pressure heading to 2020 election.
