Nepanoa

President-elect Donald Trump’s announcement of tariffs on goods from Mexico and Canada has ignited critical discussions about the future of the USMCA and its potential impact on North America’s economy. As Alberto Villarreal, mentioned in today’s The Wall Street Journal article, “If Trump follows through with imposing immediate and unilateral tariffs, this would mean ‘going nuclear’ on USMCA.” Such actions could disrupt supply chains, increase costs for businesses and consumers, and create significant challenges for companies operating across borders. This moment highlights the importance of thoughtful dialogue and proactive strategies to address these challenges while protecting the interconnected economies of the region.

President Trump's announcement that the U.S. will impose tariffs on Mexican and Canadian products appears to aim at achieving two objectives: 1) Broadening the scope of negotiations, traditionally centered on trade, to include immigration, security, and drug-related issues. 2) Accelerating the scheduled review of USMCA, originally planned for 2026. If President Trump proceeds with imposing immediate and unilateral tariffs, it could escalate tensions and effectively "go nuclear" on USMCA. In response, Mexico and Canada might retaliate with tariffs on U.S. exports before revisiting the agreement. For instance, Mexico could target key U.S. products such as apples, potatoes, soybeans, wheat, steel, chemicals, and others. Mexico and Canada may not favor President Trump's approach, but they have successfully negotiated with him and should be prepared to navigate this process. Eager to see how these developments unfold and contribute to strengthening the North American business partnership among the three countries. Read the The Wall Street Journal article here: https://lnkd.in/gTtN479i

El pasado jueves, en colaboración con Cerity Partners, organizamos el evento US-Mexico Investment Roundtable en Monterrey. Fue un espacio de análisis y diálogo donde expertos de Eurasia Group, Procopio, Cory, Hargreaves & Savitch LLP, Nepanoa y BWA Global, Cerity Partners y Santos-Elizondo S.C., compartieron su visión sobre el panorama político y económico entre Estados Unidos y México, así como las oportunidades de inversión que surgen de este entorno. Agradecemos a los más de 50 clientes y amigos que nos acompa?aron. Este evento refuerza nuestro compromiso con el intercambio de ideas y con las conexiones que impulsen proyectos estratégicos. #Networking #InvestmentRoundtable

Yesterday, Donald Trump was elected as President of the United States. At Nepanoa, we welcome this new chapter for US and Mexico, recognizing the opportunities for bilateral collaboration that each new administration brings. We envision the continuation of a mutually beneficial relationship that drives economic growth, resilience, and innovation, benefiting industries and communities on both sides of the border. Let’s continue building the future of North America.

We want to congratulate our Managing Director, Alberto Villarreal, on his new role as President of the US-Mexico Chamber of Commerce, Mid-America Chapter. As President, Alberto will focus on expanding cross-border trade, enhancing regional economic development, and strengthening industry collaboration. His leadership will strengthen the Chamber’s role as a vital resource for businesses navigating the opportunities and challenges in US-Mexico trade. We are excited to support Alberto in this journey and look forward to the positive impact he will bring to the business community in Mexico and the Midwest.

Beyond adopting new processes, an agile transformation shifts the company culture to embrace change and innovation, ensuring faster response to market demands and customer needs. It’s not a one-time project, but an ongoing journey toward greater efficiency and responsiveness.

The North American economy thrives on collaboration between the US, Mexico, and Canada, offering businesses a prime location for growth. With geographic proximity, shared time zones, and extensive trade agreements like the USMCA, companies can streamline their operations and boost efficiency. North America's status as a global powerhouse—with 27% of the world's GDP—enhances the region's appeal. At Nepanoa, we help businesses navigate these opportunities, offering guidance on how to use this region's strengths for long-term success.

Where does Mexico stand now? The global landscape for business and trade has transformed significantly since the pandemic. Mexico has emerged as a key hub for business expansion, with companies increasingly seeking alternatives to Asia for manufacturing and trade. Recent changes, including the election of a new president and the implementation of new policies, are further shaping Mexico's evolving role. Our latest report, "Mexico’s Potential in the Global Economy," is now available on our website. It examines the opportunities and challenges Mexico must navigate to strengthen its position as a leading player in the global economy. Head over to the Insights & Resources section to explore this new resource: https://lnkd.in/g4un4HNz

While changes are inevitable, the North American Economy is looking better than it has in previous years. Inflation is receding, with central banks like those in Canada and the European Union already cutting interest rates, and the U.S. potentially following suit in late 2024. This will lower borrowing costs and boost demand for goods and services.? North America is also expected to continue as a strong regional investment and trade bloc, making the best of its geographical advantages and closeness during the everchanging international landscape. https://lnkd.in/gsjzBgdA

Political shifts in North America can introduce uncertainty for businesses across Mexico, the US, and Canada. Navigating this environment requires strategic adjustments. Staying informed on government policy changes, fostering cross-border collaborations, and building agile business models are essential strategies for ensuring resilience. As political landscapes evolve, so must your approach.