DAILY BASKET – NEWS COMMENTARY
Mexico Cancels Sugar Exports to the US
MARSAL COMMENTS: The Trump instigated political fallout with Mexico is still running at full speed. The US Threatened to build a border wall, stop Mexican immigrants, deport those in the US, and to cancel NAFTA, the US/Canada/Mexico trade agreement signed by Clinton.
Now Mexico has retaliated, albeit in a small manner, and canceled Sugar exports to the US until, hopefully, the beginning of April. The reasons are diplomatically stated as logistical and related to shipping scheduling.
Mexico supplies about one third of US sugar imports (Was half a few years ago), and a stoppage would disrupt the market and raise prices. Is this the beginning of a trade war? In any case, it will be a first time the US tastes its own medicine.
EFFECT PERIOD: (Short Term)
IMPACT POTENTIAL: (Negative)