Staff Reports
John Carney, economics editor for Breitbart News, made waves on Fox Business Network’s “Kudlow” by delivering the bold claim that Mexico isn’t about to initiate a trade war in response to President Trump’s tariff promises. It seems that, unlike many hand-wringing pundits who fret over a potential economic Armageddon, Carney sees through the panic and recognizes the hard truth: Mexico needs the U.S. far more than the U.S. needs Mexico.
During the discussion, guest host David Asman spotted the usual suspects—the academics and commentators—grasping at straws by predicting inflation fallout from Trump’s tariff plans. Asman was quick to remind viewers that previous instances of trade tension, such as during the Smoot-Hawley debacle, did not lead to runaway inflation as the doomsayers warned. Citing history, Asman fostered a refreshing dose of realism in an environment chock-full of alarmist rhetoric.
Carney laid down a crystal-clear logic: A trade war would be catastrophic for Mexico. With a staggering 83% of their exports heading north across the border into the United States, it’s a bit rich for Mexico’s leaders to posture against Trump. While they might look tough for domestic audiences, Carney argued that optics do little to change the cold, hard economic reality. With about a quarter of the Mexican economy tied to exports to the U.S., this is not the script their president wants to follow.
"Carney just dropped some insights on Kudlow's show! 🌎🔍 He believes Mexico won’t ignite a trade war over Trump’s tariffs. It’s all about diplomatic dialogue and cooperation. Let’s see how this unfolds! 🤔💬" https://t.co/6hVtVF6CKu https://t.co/qwMEZyTRek
— NahBabyNah #Trump (@NahBabyNah) November 27, 2024
Mainstream media often fails to reflect this straightforward calculus, opting instead to sensationalize the fears of economic fallout. They paint a picture of armageddon when, in reality, it appears Mexico is well aware that their economic interests hinge on maintaining a favorable relationship with the U.S. trade policies. Trade war predictions are less about sound economic theory and more about political theatrics.
As the Trump administration gears up to implement new tariffs, it’s clear that Mexico’s response will be carefully calculated and anything but reckless. Carney’s insights highlight the advantage the United States holds in this economic equation, showing that, ultimately, Mexico may be bluffing but has quite a bit to lose if they continue with the charade of aggression. As negotiations move forward, it’s safe to say that the biggest players in this game understand who truly has the upper hand.
